Too much month left at the end of your money? Tips for SMEs

It’s the end of the month. You’re staring at the calendar, and it just isn’t budging. And neither is your budget.

The last-week-of-the-month crunch is real – and a stressful time in the monthly financial cycle for many small and medium enterprise (SME) owners.

“If we’re not careful, the month-end period transforms into a ticking time bomb of financial obligations for SMEs,” says Tom Stuart, chief marketing officer for Lula.

Here are Lula’s top tips to add to your business playbook for navigating the turbulent times:

“First, prioritise: Tackle unavoidable expenses like salaries and utilities immediately. This isn’t the time for discretionary spending,” Stuart advises. “It’s about survival and keeping the ship afloat. If the pinch is severe, start an honest conversation with your suppliers to negotiate extended payment terms.

“A slight shift in the payment window can offer the breathing room your balance sheet needs. Also, consider trimming non-essential operations. In lean times, every rand saved is a rand earned.”

“Don’t overlook the month-end close process. This essential business health routine fortifies your financials, enabling you to start each month on solid ground, and our new banking platform and financial dashboard will help you do it,” he adds.

Lula’s forte is quick, accessible funding. Its Revolving Capital Facility can pump vital cash into your business within 24 hours. Unlike traditional loans, the Revolving Capital Facility allows you to withdraw from your pre-approved credit limit without having to complete a full application each time – saving time, money and empowering you to access funds as your business needs it.

“At the same time, our all-in-one financial management tool Lulaflow provides a unified view of your financial health. If you link your business’ other bank and management accounts to Lulaflow, you can view and forecast your entire cash flow from one place, helping you understand when you need to be paid or pay one of your suppliers, with ease and certainty,” Stuart explains.

“This can be the difference between surviving and thriving, come month-end. It’s all about staying adaptable through the toughest times, while staying true to your core mission.”

In essence, Lula turns the month-end crunch from a period of financial stress into an opportunity to streamline your business financial strategy.

“We’re your financial co-pilot and we’re about helping SA’s SMEs thrive. Our products are here to help you turn the month-end stretch around, from a financial tightrope into a runway for take-off,” Stuart concludes.