The Invisible Chokehold: Why "Great" Businesses Run Out of Cash

Erik Donert
3 days ago
2 min read

If you’re running a flooring, supply, or manufacturing business in Australia, you know the drill. The orders are coming in, the team is flat out, and the "Sold" signs are everywhere. On paper, you’re killing it.

But at 11:00 PM on a Tuesday, staring at your Xero dashboard, it doesn’t feel like you’re winning.

You’ve paid for the timber or tiles upfront. You’ve paid your installers and your BAS. Yet, you’re still waiting on that big progress claim from 60 days ago. In the construction industry, we’ve inherited a broken system where the "little guy" is expected to give interest-free loans to the big players.

At Edelweiss Finance, we see this every day. Businesses don’t usually fail because they lack work; they fail because they lack liquidity.

The Brutal "Growth Trap"

When you’re successful, you take on bigger jobs. Bigger jobs mean:

Higher upfront material costs: Buying bulk before you even set foot on site.
Wages that won’t wait: Your crew needs their pay every Friday, regardless of when your client pays you.
The 90-day stretch: Chasing invoices while trying to fund the next job using your own personal savings.

This isn't just stressful—it’s a chokehold on your growth. But there is a "New Normal" that smart Aussie SMEs are using to break the cycle.

Two Tools to Take Back Control

You don’t need to risk your family home or personal assets to keep the wheels turning. You just need the right commercial tools in your belt—like a high-quality nail gun, they just make the job more efficient.

1. Receivables Management Finance (Modern Invoice Finance)

Imagine sending an invoice and having 80% of those funds in your account the next day. No more waiting 60 days.

Instant Cash: You get paid when you finish the work, not when the client feels like it.
Less Admin: We can help manage the follow-ups so you can focus on the site, not the phone.
Scalable: As your business grows, your funding grows automatically.

2. Domestic Trade Finance

This is for the "Jasons" of the world who need to buy materials today but want to keep their cash in the business.

Pay Suppliers Fast: Secure early payment discounts from your suppliers.
Breathe Easier: Get up to 90–120 days to pay for materials, aligning your costs with your income.
Stay Compliant: No more "robbing Peter to pay Paul" when the BAS statement lands.

Is Your Cash Flow Healthy?

The construction industry is changing rapidly. Technology-enabled finance isn't a sign of "trouble"—it’s a sign of a smart operator who values their time and their sanity.

Don't let a "standard industry practice" be the thing that holds your business back. It's time to put the pressure back where it belongs and keep your cash where it’s needed: in your business.

Take the First Step Toward a Stress-Free Site

Is your business truly "cash-flow healthy"? Don't guess—get the data.

Download our Free Cash Flow Health Check Calculator: See exactly where your gaps are and how to plug them. Subscribe & Get the Calculator Here.
Book a Free 30-Minute Consult: Let’s have a chat about your specific trade and how we can unlock your working capital. Book Your Spot Here.