Managing people is a key part of any small business – but it can be one of the most difficult aspects of the job. We put your questions to our experts!

Is there any reason to give my clients longer payment terms? What are the pros and cons?

Austin Rulfs, Zanda Wealth, says: 

In my dealings with hundreds of clients, I have seen the payment terms determine the whole structure of a deal in property and finance transactions. Longer payment terms are helpful only when they are offered strategically. The most obvious advantage of providing longer terms would be that it opens the door to customers who might be experiencing strained cash flow or operating in delayed revenue cycles. To them, longer terms eliminate an entry barrier. By giving breathing space, you can get extra deals or an order increase.

This can also enhance client retention, particularly in industries where your competitors are not as flexible.

Flexibility, however, should come at a cost. Giving 60- or 90-day terms will bind your cash and add risks; essentially you are funding the activities of your client. There is a price to pay for that. I recommend that companies consider the time value of money. In the case of you allowing extra time to receive payment, then you should increase the price slightly or give a short-term discount to encourage faster payment. This shields your profits while deterring misuse of the extended terms.

It is not just about being able to charge more, it is also about negotiating terms that augur well for the relationship. I would not be comfortable giving longer terms to a first-time customer, unless I have evidence of solid financial support or a down payment. It may be an indication of trust that can help maintain the relationship established with clients with a payment history.

Simply put, longer payment terms can be effective when used as an instrument, not a precondition. You must defend your cash flow, quantify the risk, and price against that. When handled with care, it will make your business appear both flexible and client-centered, but not at the expense of financial control.

I need to buy a new ute, but haven’t got the cash sitting there to buy it outright. What are my options

Maria Beux, Director and Principal Finance Broker at EverTrue Finance, says:

If you’ve been running your business for over two years, are ABN and GST registered, have clear credit, and own property, getting finance for a new ute can be surprisingly simple. In many cases, lenders only need basic information: driver’s licence, ABN details, and a few quick questions. That’s it. No tax returns, no hassle. The process can often be wrapped up within 48 hours.

Utes are generally financed under an equipment loan, which means a fixed term, a fixed rate, and the option of a balloon payment. A balloon is a lump sum due at the end of the loan which you can pay off, refinance for another term or cover by trading in your vehicle.

Even if you don’t own property, there are still flexible options. You might just need a deposit of 10–20%, which can sometimes be covered by another unencumbered asset. The good news? There are plenty of lenders who understand the real world of trades and can tailor solutions to fit your situation.

My golden rule? Always see any asset purchase as an investment, not just an expense. Ask: will this ute make your work more efficient, reduce downtime, or help you land better jobs? If yes – that’s good debt.

Also, keep in mind that business finance can affect your future personal lending capacity. So it’s smart to think about the big picture and get advice from your broker early.

George Shahinian, Managing Partner, Economos Group, says:

If you’re a tradie needing a new ute for your business, there are several finance options available that can help you get the right vehicle while preserve your working capital, and maximising your business’s tax benefits.

Chattel mortgage
This is one of the most popular options for tradies. With a chattel mortgage, you own the ute from day one, and the lender uses the vehicle as security. This setup allows you to claim GST on the purchase price upfront, as well as deduct depreciation and interest payments which helps to reduce your taxable income.

Chattel mortgages usually have competitive rates and flexible terms, making them suitable for many small businesses.

Finance lease

Under a finance lease, the lender buys the ute and leases it to you. You make monthly payments, and at the end of the lease, you can either pay out the residual value to own the ute, upgrade to a new one, or refinance the lease. Lease payments may be tax-deductible, and this option is ideal if you prefer to update vehicles regularly without tying up capital.

Commercial hire purchase

This option lets you use the ute while paying it off in instalments. Once you’ve made the final payment, ownership transfers to you. It’s a straightforward way to manage business vehicle costs, and repayments can often be structured to suit your cash flow.

Low doc and no deposit loans

If your business is newer or you have limited financial documentation, some lenders offer low doc loans, sometimes with no deposit required. These are designed for ABN holders and can be approved quickly, though they may come with higher interest rates.

Tax benefits

Financing a ute through your business can offer significant tax advantages, including GST credits, deductions for interest and depreciation, and potential instant asset write-offs for vehicles under the threshold.

Remember to:

Compare offers from multiple lenders for the best rates and terms.
Consider your business’s cash flow and choose a repayment plan that matches your income cycles. Factor in insurance and ongoing running costs when budgeting for your new ute.

What are some of the key things to think about at the EOFY to reduce my tax bill?

Morgan Wilson, Founder and Director at Creditte, says:

Key EOFY Tax Considerations for Electrical Contractors

With EOFY approaching, electrical contractors can proactively reduce their tax bill and improve cash flow. Here are some key strategies:

Maximise immediate deductions: Take advantage of the instant asset write-off (subject to eligibility and thresholds). Purchasing tools, equipment, or a work vehicle before June 30 could provide immediate deductions.

Review super contributions: Making additional super contributions (within caps) before EOFY can be a smart way to reduce taxable income while securing your retirement.

Prepay expenses: If cash flow allows, prepaying business expenses, such as insurance, rent, or subscriptions, can bring forward deductions.

Write off bad debts: Review your accounts receivable—any unrecoverable invoices should be formally written off before EOFY to claim a tax deduction.

Take stock of stock: If you hold inventory, conducting a stocktake and writing off obsolete or damaged items can lower your taxable income.

Structure for tax efficiency: As your business grows, review whether your business structure is still the most tax-effective option. A restructure may provide benefits.

How do I price jobs to ensure I’m making a profit and not just covering costs? 

Steve Kantor, Fractional CFO with clients in the construction and trades industry says:

When determining the percentage of profit to build into your pricing, a general rule of thumb is to aim for a profit margin of 50% for most industries. However, this can vary depending on your sector and business model. The key is to strike a balance that allows you to cover costs, remain competitive, and support your growth objectives.

When putting together quotes, it’s vital to consider more than just your profit margin. First, ensure you’ve accurately accounted for your direct costs, such as materials, labour, and other expenses directly tied to delivering your product or service. Then, factor in your overheads. These are the fixed costs you’ll incur regardless of sales, like rent, software, and administrative expenses.

Next, think about the value you’re offering. Pricing should reflect not only your costs but also the perceived value to your customers. If your service delivers exceptional results or saves the client significant time or money, your pricing should reflect that premium.

Finally, consider your market position and competitors. Undercutting may win short-term business but can erode long-term profitability. Instead, focus on differentiation and creating value.

A data-driven approach, reviewing your financials, benchmarking against competitors, and regularly reassessing your costs, will help you maintain healthy margins and sustainable growth.

How can I raise my prices without it p*ssing people off?

Jasmine Parasram, Pricing Coach at Jasmine Designs, says:

If you aim to avoid p*ssing people off, your prices will never go up. Ultimately, you’re a business, and to grow as a business, you need to price yourself out of the market that can’t afford you. You don’t owe affordability.If you have repeat customers, giving them a one to three-month heads up that prices are going up is a great way to increase your prices while maintaining the relationship. This small act of courtesy may be the thing that sets you apart and keeps that client long-term. Communicate with them so they are well informed and aren’t shocked when it happens.

On the other hand, if most of your jobs are one-offs and most of your customers are new each time they work with you, they likely don’t know what the price was before you raised it, so you don’t have to worry about them comparing. If they did see the price before but now it’s more, that’s not on you, but a good practice is having a note stating quotes are valid for 30 days on your estimates. Prices today aren’t promised tomorrow.

Lastly, be mindful of the frequency and amount you increase your prices. Yearly is expected in most businesses, or increasing when your business changes in terms of scale or service level. A 5-10% raise is something that most customers can stomach, a 20-30% without a justifiable reason that benefits them will most likely make the customer think twice or go elsewhere. Remember, your prices need to serve the future and growth of your business first before they serve the customers’ budget.