As 2023 unfolds ahead of us, Australian businesses are at a crossroads. Small and medium enterprises (SMEs) are facing a number of challenges such as supply chain issues, interest rate rises and defaulting clients.

In this guest post, Wayne Morris, CEO of Fifo Capital, offers insights into the current state of the industry and provides his predictions on what we can expect to see change in the coming year.

From the adoption of new technologies to the challenges faced by SMEs, Morris delves into the changes that lie ahead for Australian businesses in 2023 and how they can adapt and thrive in this rapidly evolving landscape.

Businesses need better support

As we move into 2023, the Australian business finance industry is at a critical juncture.

Despite strong growth over the past decade, small and medium enterprises (SMEs) are facing a number of challenges of which many will have a strong impact on the financial viability of their business causing them to outgrow the status quo of using traditional business loans, spot financing or using personal assets. Now is the time for Australian businesses to come to the fore and take advantage of better business finance and better technology.

A legacy of inertia

As the CEO of Fifo Capital, I have seen first-hand the struggles faced by Australian businesses in securing good credit terms with local and overseas suppliers and debtors, growing their businesses and having enough funds on hand to grease the financial wheels of their business.From limited access to traditional funding, to difficulties in securing loans based on business credentials, the pain points are all too familiar. Add to that, the inadequate financial management tools and resources and the ever-changing compliance regulations, it’s no surprise that businesses are struggling. But it’s time to break the legacy of inertia and work towards solutions that empower businesses to succeed.

The key pain points for businesses are all too familiar.

Limited access to traditional forms of financing. Difficulty in securing funding based on business credentials. Inadequate financial management tools and resources, and difficulty in keeping up with rapidly changing financial regulations and compliance requirements.

Too long has this been the case with little improvements made.

Unstacking the decks

What will bring about an evolution in Australia’s business finance sector? Necessity.

And what will enable this change? Technology.

In today’s globally impacted markets, improving credit terms will be difficult without providing an incentive to suppliers and debtors so Australia needs a better form of finance to support its crucial SME sector. And the economy needs a more resilient business sector.

The adoption of new technologies such as artificial intelligence, blockchain, cloud computing and big data make it easy for businesses of all sizes to access better, more sophisticated tools and services.

These technologies can level the playing field, enabling all businesses to safeguard and protect their bottom line while having access to the funds they need, when they need, based on their business credentials. But these technologies are complicated and many SMEs simply don’t have the time or patience needed to yield a benefit.

But the time is now

SMEs make up 97% of all businesses in Australia and contribute to around 33% of the country’s GDP. Imagine the impact if even half of these businesses were able to take advantage of better business finance and better technology. This has the potential to be a game-changer for SMEs and the Australian economy as a whole, allowing local SMEs to ride out supply chain issues and delayed orders, and ensure we have the robustness to future-proof our growth
In the past, the way businesses operate has favoured the big guys at the expense of the little guys. The ones who can least afford the delays and to take the hits. But now, with better business finance and technology becoming so accessible, there is no sensible case for ignoring the better ways to run and fund businesses.

The traditional way of going to a bank for a loan, irrespective of the changing flow of your business, is well — outdated and inefficient, to say the least. Businesses need to be flexible and adaptable to changing circumstances, and that’s where new technologies come into play.

New tech brings new insights

With the advent of new technologies, businesses are now able to gain access to a wealth of new insights and data that can help them make better financial decisions.

These technologies help businesses make better predictions and decisions about future market trends and more importantly customer behaviour, which can help them make better financial decisions. And by making this technology accessible to all businesses, we can level the playing field and increase the odds for good businesses to keep succeeding.
Add to this, blockchain technology that can provide businesses with more transparency and security when it comes to financial transactions. This technology can be used to create tamper-proof records of transactions, making it more difficult for fraud to occur. Additionally, it can also make it easier for businesses to track and manage their inventory and supply chain, which can help them better manage their cash flow.

New technologies are revolutionising the way we approach business finance, providing businesses with the data and insights needed to make informed decisions and stay competitive in the global marketplace.

Building greater synergy

How you run and how you fund your business will be inseparable in the years to come.

Businesses that are able to effectively leverage new technologies and innovative finance solutions will have a distinct advantage over those that don’t.

So, to help those SMEs that want to focus on growing their business, but have access to the latest technology without having to lose time and patience learning complex systems, Fifo has invested heavily in building our Fifopay platform.

Fifopay gives all Australian businesses next level business finance.

The Fifopay platform is designed to help businesses make better financial decisions, by providing them with real-time data and analytics that can quickly help them better understand their cash flow and revenue streams. Enabling businesses to make better decisions about how they run, fund and operate their business, every day. It can also help them forecast future financial needs, so they can make more informed decisions about how to manage their finances.

Once a business introduces Fifopay platform, their continued need for traditional forms of finance, such as more business loans and debt ends. They gain a better understanding of their financial health, have access to finance solutions to help them grow and take action.

Adapt and thrive

As the world of finance and technology continues to evolve, it will be more important than ever for businesses to adapt and stay ahead of the curve.

By embracing new technologies, diversifying revenue streams and staying informed about industry developments, businesses can not only survive, but thrive in the new era of business finance.

At Fifo Capital, we are committed to helping Australian businesses improve their bottom line and we believe that by investing in the right technology, we can make this happen.

Now is the time for Australian businesses to take advantage of better business finance and better technology, and to secure their place in the global marketplace.

Wayne Morris, CEO at Fifo Capital

Wayne Morris is committed to driving greater success for Australian businesses by making better business finance more accessible. Wayne actively challenges businesses and government to break free from conventional financial methods, and instead to embrace scalable, forward-thinking finance solutions that will foster more resilience across the business landscape and the economy.

Ready to improve your business? To hear more about Fifopay, register your interest.