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Speaking on Broker Daily’s Finance Specialist podcast, Accendo Financial founder Trent Carter said brokers had an opportunity to play a much broader advisory role as businesses navigate tighter cash flow conditions and changing regulatory requirements.
Rather than waiting for clients to request finance, Carter said brokers should be identifying issues early and helping businesses better manage their working capital before problems arise.
Profitability does not always mean cash flow
According to Carter, one of the biggest misconceptions among business owners is that profitability automatically means a business has strong cash flow.
Instead, he said brokers should be looking beyond the profit and loss statement to understand how money is moving through a business.
“One of the biggest mistakes people make is they look at the profit and loss and say, ’Well, I’m making money, therefore I must have cash.’ Profit and cash flow are two completely different things,” Carter said.
“You can have a profitable business that’s running out of cash every single day because of the way that cash moves through the business.”
Indeed, cash flow is becoming the defining pressure of SMEs in 2026, as payment arrears among small businesses reach six-year highs.
Rather than waiting until a client needs finance, Carter said these conversations should become part of regular reviews, helping identify issues before they become major funding challenges.
He said: “While I might have done myself out of a deal here, what I have generated is a client for life because we’re showing them parts of their business that they can’t see.”
Payday Super in focus
Carter also said that the introduction of Payday Super on 1 July will only increase the importance of cash flow conversations, as businesses lose some of the flexibility they have traditionally had over managing cash flow.
While the reform does not increase a business’ overall superannuation obligation, he said it fundamentally changes when cash leaves the business.
“The profitability of the business hasn’t changed, but the timing of the cash has,” Carter said.
“Cash is now leaving the business much earlier than it was before, so business owners need to understand they’re going to have less flexibility around how they manage their working capital.”
Broker Daily has previously reported on how the changes could trigger a “structural shift” in how SMEs manage cash flow and access credit.
Working capital
Understanding the right funding solution is equally important, Carter said, with brokers encouraged to look beyond traditional overdrafts when discussing working capital.
He said every business operates differently, meaning brokers should first understand the problem before recommending a product.
“If the only tool you’ve got is an overdraft, then every problem looks like an overdraft problem,” Carter said.
“Sometimes it’s debtor finance, sometimes it’s trade finance, sometimes it’s something completely different. The product is only the solution once you’ve identified the problem.”
From loan writing to problem solving
Ultimately, Carter said the brokers who stand out will be those who solve business problems rather than simply arranging debt.
He said that identifying operational issues or improving a client’s cash flow position can be more valuable than writing another loan, building stronger long-term relationships in the process.
Equally, brokers have also been urged to check in with clients more regularly and meaningfully, to catch problems before they entrench themselves.
“I’d rather do myself out of a deal today and have a client for life than write a loan they didn’t need,” Carter said.
“If I can help them fix the underlying issue, they’re going to come back when they actually do need finance, and they’re going to tell other business owners about the value I added.”
[Related: SME lending tipped as next growth area for brokers]
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