The holiday season can be a challenging time for tradies. December often brings a surge in work, with deadlines to meet and increased expenses, while January typically sees a slowdown, resulting in delayed payments.
This combination can create significant cash flow stress during a period when financial stability is crucial. We understand these challenges all too well. That’s why we’ve reached out to the team at LoanHub - to share their expert advice on navigating this tricky time of year.
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Recent Statistics Highlight Cash Flow Challenges for Tradies:
A NAB SME Survey found that 40% of Australian SMEs list cash flow as their top concern, with the construction sector heavily affected. Similarly, ASIC reports 11,053 insolvencies in 2023–24, with construction among the hardest-hit industries. These figures highlight the holiday season’s financial strain on tradies.
Here are some practical tips from LoanHub:
“Tradies often face a perfect storm of outgoing expenses and delayed payments during the holidays,” says Phil Waddington from LoanHub. “Having a clear strategy for managing cash flow during this period can ease stress and keep things moving.”
⏰ Start Planning Early:
“Setting aside a portion of your December income can act as a buffer for the quieter weeks in January,” advises Phil. By building up a financial cushion, you can cover regular expenses even when work slows down.
🧾 Stay Proactive with Invoicing:
“Send out invoices as soon as jobs are complete and follow up before businesses close for the break,” adds Richard from LoanHub. Timely invoicing can help you collect outstanding payments faster and avoid unnecessary delays.
💵 Review Your Expenses:
Take the time to identify and reduce non-essential costs over the slower months. This frees up cash for critical needs and reduces financial pressure.
💰Consider Flexible Finance Options:
Whether it’s invoice financing or a tailored repayment plan, LoanHub suggests exploring solutions to bridge any cash flow gaps caused by delayed client payments.
“We’ve worked with many tradies who simply need a bit of advice and support to get through this seasonal dip,” says Richard Waddington from LoanHub. “Small changes in how you manage cash flow can make a big difference.”
By following these tips, you can minimise stress, maintain stability, and position your business for a strong start to the year. Whether it’s planning ahead or seeking professional advice, the right approach can help you get through the holiday period with confidence.
For more expert advice and tailored solutions, contact our experts LoanHub or explore the Tradiespace Loan Tool to find the right financial support and assist with your Christmas cash flow.
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We know from experience how costs rolling in from a busy December, coupled with a quiet spell in January, can really cause cash flow stress across the Christmas and new year period.
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