Navigating Business Finance in a Volatile Economy

Stability is rare—but smart finance decisions can keep your business moving forward. 

What Do We Mean by a Volatile Economy? 

Interest rate hikes, inflation, supply chain shocks, shifting consumer demand—today’s business environment is anything but predictable. And whether you’re scaling up, holding steady, or simply trying to protect your cash flow, navigating finance in uncertain times requires more than reactive thinking.  

But volatility doesn’t mean you have to stop growing. It just means you need to get strategic. 

Here’s how Australian business owners can stay resilient, make confident finance decisions, and come out stronger—no matter what the market throws at them. 

1. Assess Where You’re Most Exposed 

Not all volatility is equal. Your first move is to understand how changing conditions affect your business: 

• Are rising rates increasing your monthly repayments? 

• Are suppliers increasing prices or shortening terms? 

• Are customers slowing down their payments? 

Cash flow forecasting is your best friend here. Look ahead 3–6 months and identify any weak spots. Once you’re clear on your risk areas, you can make finance decisions that fill the gaps—not add to the strain. 

2. Don’t Hoard Cash—Use It Strategically 

In times of uncertainty, many businesses default to hoarding cash. But while liquidity matters, idle capital is lost opportunity. 

Instead, consider: 

• Financing large purchases (vehicles, equipment) with a chattel mortgage 

• Using working capital loans to bridge seasonal slowdowns 

• Refinancing or consolidating old debts into lower, more manageable repayments 

This allows you to free up your cash reserves while still investing in essential tools for growth. 

3. Consider Refinancing Before Rates Shift Again 

If you’re carrying older loans secured during higher rate periods—or if your lender’s policies no longer suit your needs—now might be the time to refinance. 

Benefits of refinancing: 

• Lower monthly repayments 

• Better loan structure for your cash flow 

• Option to roll multiple debts into one facility 

• Potential access to equity or additional funding 

Many lenders are still offering competitive terms for businesses with clean repayment history or strong asset backing—even in a volatile market. 

4. Work With a Broker Who Knows the Terrain 

Not all finance partners are created equal. In a volatile economy, working with a broker can: 

• Save you time by identifying lenders who match your needs today 

• Prevent unnecessary hits to your credit score 

• Give you a clearer path forward when funding needs to move fast  

At Thrift Capital, we work with a broad panel of lenders—each with different appetites, industries, and policies. We help our clients stay agile, access capital quickly, and avoid finance pitfalls that others fall into. 

Final Thought: Volatility Doesn’t Stop Growth—But It Demands Strategy 

It’s easy to delay financial decisions when things feel unpredictable. But often, the right financial move during a volatile period can set you up for long-term strength. 

Whether you’re applying for finance for the first time, refinancing old debt, or planning equipment upgrades—smart, well-timed moves will help you ride out uncertainty and find opportunities others might miss. 

Let’s Talk Strategy  

📞 Speak with a Thrift Capital broker to find the right options for your business 

📥 Checkout our Pre-Approval Checklist to get started today