Higher rates set by the Reserve Bank of Australia are aimed at trying to curb consumer spending and lower inflation. However, this can also be tough for SME businesses who may see a drop in revenue and a higher cost of borrowing. Here are just a few tips for 2024:

• Business owners might consider setting aside extra money to be able to repay any loans and debt. New assets and capital developments may need to be put on hold. Use an adviser to look over your finance options.
• You might need to look around for a better business loan. Banks are likely to pass on the interest rate changes. It is time to be savvy about finding the best deal (while considering any penalties for moving). It is likely banks will try to be competitive.
• While businesses need to grow which requires staff, a careful look at current expenditures and resources required could be wise.
• Ensure your accounting and payment offerings are in top shape. You may need to get used to chasing debts more frequently. Don’t wait for clients to fall behind with the payment of invoices. Make sure your terms are spelled out and invoice promptly when work is done. Consider agreeing on more cost-effective payment terms for your own contracts and suppliers i.e., project or monthly payments instead of hourly rates.