Company Interview / How SMEs can bridge cashflow gaps in 2026

Key Points:

Rising input costs and regulatory change continue to challenge SMEs Interest rate uncertainty impacts both business and personal finances for SME owners Increased superannuation payment frequency from July 2026 likely to worsen cash flow issues Earlypay (ASX:EPY) solutions seen as helpful in bridging SME cash flow gaps

James Beeson from Earlypay highlights that Australian SMEs have faced significant challenges throughout the year due to mounting input costs such as wages, energy, rents, and insurance, which often cannot be passed on to customers. Beeson suggests that ongoing regulatory changes have further strained small and medium businesses, as compliance often diverts resources away from their core operations. Many SMEs lack the scale to efficiently manage increased regulatory requirements, leading to extra costs and increased workloads, particularly for time-constrained business owners.

Beeson points to the current interest rate environment as another pressure point, noting the Reserve Bank of Australia’s shift in tone towards potential rate hikes. He argues that rising rates negatively impact not only business finances but SME owners’ personal lives, as many have home mortgages. Beeson observes a recent uptick in SME confidence, referencing the Small Business Pulse for the three months leading up to November, but anticipates this may shift if interest rates rise as expected in the coming quarter.

Forecasting into 2026, Beeson calls for greater stability – in global economic conditions, regulatory frameworks, and interest rates – to allow SMEs to plan ahead. He raises concerns over the upcoming changes to superannuation payments, which will require payment at the same time as salaries from July 2026. Beeson stresses that accessible working capital, such as invoice finance offered by Earlypay (ASX:EPY), will become increasingly important to help bridge emerging cash flow gaps.