Thinking about a loan to fix your small business cash flow? In this episode, Chartered Accountant Paul Sweeney explains why borrowing doesn't fix a cash flow problem, it postpones it, and gives you four checks to run before you sign anything.

When cash gets tight, the first instinct for most small business owners is the same. Get a loan. Increase the credit card limit. Dip into personal savings. None of that fixes the reason cash was tight in the first place. It just adds a repayment on top of the original problem.

Paul breaks down four checks every small business owner should run before borrowing: what problem the loan is actually fixing, whether you've forecast the repayments against best, average, and worst-case cash flow, whether the purchase is a genuine business case or a vanity purchase in disguise, and whether you've built the business case before you've even started organising finance. Includes a breakdown of how simple interest rates can hide the real cost of a loan, and why some business credit cards and short-term lenders cost far more than they appear to.

👉 Download the free 5-Day Cash Flow Email Course and find out which of these four drains is costing your business the most: https://courses.paulsweeneyaccountant.au/5-days-to-cleaner-cash-flow

👉 Grab the free Pretium Solutions eBook, "Start Improving Cash Flow Today" for five practical steps you can start today: https://pretiumsolutions.com.au/start-improving-cash-flow-today/

In this episode:

• Why borrowing doesn't solve a small business cash flow problem, it delays it
• Four checks to run before taking out any business loan or finance
• How to forecast best, average, and worst-case scenarios before committing to loan repayments
• The real difference between simple interest and the true annual cost of borrowing
• How to tell a genuine business case from a vanity purchase dressed up as one

Resources Mentioned

📘 Free eBook — Start Improving Cash Flow Today: https://pretiumsolutions.com.au/start-improving-cash-flow-today/

📧 Free 5-Day Cash Flow Email Course: https://courses.paulsweeneyaccountant.au/5-days-to-cleaner-cash-flow

🌐 Paul Sweeney Accountant: https://paulsweeneyaccountant.au/

🌐 Pretium Solutions: https://pretiumsolutions.com.au/

📱 Instagram: https://www.instagram.com/paulsweeneyaccountant

▶️ YouTube: https://www.youtube.com/channel/UCSgDcYMjHVQ9uEdZgGpvdBw

About the Host

Paul Sweeney is a Chartered Accountant and founder of Pretium Solutions, with over 25 years advising small and medium businesses. He's the host of Grow Your Business and The Business Behind Your Business podcast.