Woodward Finance Featured in Inside Small Business on the Cash Flow Mistake Behind 52% of Business Failures
Woodward Finance Director Kim Woodward was featured in Inside Small Business discussing one of the most common causes of business failure in Australia: cash flow pressure.
In the article, Kim explains that many profitable businesses run into trouble not because of a lack of sales, but because cash becomes tied up in stock, equipment, debtors or expansion plans, reducing the flexibility needed to manage day-to-day operations and unexpected challenges.
Drawing on ASIC insolvency data, the piece highlights how inadequate cash flow continues to be one of the leading contributors to business failure. Kim shares practical insights for Australian business owners on maintaining financial flexibility, monitoring working capital and recognising the warning signs before cash flow becomes a serious problem.
The article provides valuable guidance for SMEs looking to strengthen their financial position, improve resilience and create sustainable long-term growth.
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About Woodward Finance
Woodward Finance is an Australian specialist finance brokerage helping small and medium-sized businesses access equipment finance, vehicle finance and business loans through a network of more than 60 lenders across Australia. The firm works closely with business owners to structure tailored finance solutions that support cash flow, growth and long-term investment in business assets.
Media commentary on SME finance
Woodward Finance director Kim Woodward regularly provides commentary on SME lending conditions, equipment finance trends, small business cash flow funding, bank lending policy changes and asset finance for Australian businesses.
Frequently Asked Questions
According to ASIC insolvency data referenced in the article, inadequate cash flow or high cash utilisation remains one of the most common factors contributing to Australian business failures. Many businesses can be profitable on paper but still experience financial difficulties if cash flow is not managed effectively.
Profit measures how much money a business earns, while cash flow measures how much money is actually available to meet expenses and obligations. A profitable business can still run into trouble if cash is tied up in unpaid invoices, stock, equipment purchases or business growth initiatives.
Common warning signs include difficulty paying suppliers on time, relying heavily on overdrafts or credit cards, delayed tax payments, increasing debtor days, declining cash reserves and struggling to fund day-to-day operations.
Business owners can improve cash flow by regularly reviewing financial performance, managing debtors closely, forecasting future cash requirements, controlling expenses and ensuring they have access to suitable working capital facilities when required.
Working capital finance provides businesses with access to funds that can be used for day-to-day operating expenses, managing seasonal fluctuations, purchasing stock, paying suppliers or supporting growth opportunities.
The right finance solution can help businesses improve cash flow flexibility and avoid unnecessary financial pressure. Products such as business loans, lines of credit, debtor finance and equipment finance can assist businesses in managing growth while preserving cash reserves.
Many business owners wait until cash flow becomes a problem before seeking assistance. In most cases, it is beneficial to explore finance options before financial pressure arises, allowing more flexibility and a wider range of funding solutions
Woodward Finance works with more than 60 lenders to help Australian businesses access equipment finance, working capital solutions, business loans, debtor finance and other commercial funding options designed to support growth and improve financial flexibility.
