Australian small to medium businesses are stuggling, with more than three quarters having faced a cash flow crisis in the past 12 months.
Tariffs and a cost-of-living crisis have forced many owners to take out business loans or dip into their own personal savings just to stay afloat.
And if nothing changes, it could put thousands out of business – and hurt everyday Aussies’ hip pockets.
The Reserve Bank of Australia (RBA) reports a significant increase in the number of businesses facing insolvency over the past few years, largely due to difficult economic circumstances.
“This will have substantial repercussions for Australians, leading to reduced competition and potentially higher prices,” Patterson stated.
“So we need to make sure that we’re protecting them [small to medium businesses] and providing as much support as we can to them.”
Trkulja considers himself lucky that his business is well-established, allowing him to navigate these financial hurdles effectively, particularly with the backing of financial technology firms.
But confessed that, had he faced this hardship earlier in his journey, it might have put ThreadLAB out of business.
