ASBFEO recommendations key step in getting SMEs back to work
FOR IMMEDIATE RELEASE
Wednesday 17 June 2020
Specialist invoice finance group Apricity has today backed the call from the ASBFEO for a small business procurement panel; but said while this great news for SMEs, small-to-medium sized enterprises need to ensure they are game ready if they are to compete for and complete Government projects.
The Australian Small Business and Family Enterprise Ombudsman Kate Carnell late last week called on the Federal Government to establish a small business procurement panel. The panel, proposed in ASBFEO’s COVID-19 Recovery Plan, would require government contracts with a value of up to $10 million, to be offered through the small business panel as part of the tender process, before being opened to the wider market.
Apricity Finance CEO, Linden Toll, said for many SMEs, engaging with such a panel on a federal level would be a huge win for their business. But warned that for businesses that were ill-prepared, winning big contracts could be a double-edged sword
“Small businesses are key drivers for the Australian economy, employing more than 2.1 million people nationwide. In NSW alone, there are currently around 580 SMEs engaged in whole-of-government (state) contracts. SMEs make up 80 percent of tender respondents.”
He continued, “We applaud this recommendation from ASBFEO, as we think it would make for a more level playing field and give many a better chance at securing government contracts. There’s potentially millions of dollars’ worth of government procurement contracts in Australia for these businesses to capitalise on.”
Mr Toll said however, that SMEs need to ensure they are fully prepared if they are to really make the most of the opportunity.
“Businesses need to be appropriately prepared to ensure they can win the business in the first place and that they need to make sure they can deliver on their contract. This means ensuring you can survive between invoice periods, that you have the right resources available, and – just as importantly – that you can continue to deliver to your existing clients. There is no point taking on that big contract if it means the rest of your business suffers as a consequence.”
Preparation is key for SMEs, and for businesses to ensure their strength, they need to educate themselves on what comes with winning big business and be aware of the resources that are at hand for them to lean on. Plus, they need to ensure they can cope with the various strains that come with small business; cashflow, working capital, and increased workforce among others.
“For the federal government to listen to Kate’s push for a small business procurement panel would be a step in the right direction” said Apricity CEO Linden Toll, “but it’s also up to SMEs to pivot, adapt and grow. This is a message we’ve been relaying to all of our clients for the past few months, if they are to have any chance at winning big business.
By the government improving its procurement process, they are supporting the creation of jobs on the small business sector and encouraging growth and prosperity within the ever-increasing small business community. But SMEs need to be ready to step up.”
For more information on Apricity Finance, visit https://www.apricityfinance.com/
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About Apricity Finance
Apricity specialises in a single product – known as invoice finance (or debtor finance). Their solution allows approved businesses to have the invoices to their high credit quality customers paid faster. This reduces frustrating wait times and provides cash flow certainty. Founded by a team of experienced investment management and finance professionals, the first office opened in New South Wales’ Southern Highlands in 2013. In 2016, Apricity opened offices in Brisbane, Melbourne and Auckland.