Interest rate cuts good for consumers however small businesses are suffering
“Manufacturing activity plunged in October, according to the Australian Industry Group” (smh.com.au)
As the paper reports, manufacturing is plunging, exporters to China and abroad are tightening their belts amongst the global slowdown and we are seeing a slowing in enquiries from wholesalers that import from China. We recently have had a major client postpone taking up our cash flow facility as he is expecting that he won’t be importing much stock from China over the coming months and has concerns that his business will recover completely in 2009.
Even with petrol prices easing the stress on the costs of moving goods around town, keeping the cash flowing as payments are stretched out by debtors can be challenging.