According to a special report from American Express, Behind the balance sheet: unlocking hidden value in credit, more than one-third (34%) of construction business CFOs confess their business has been delayed or unable to achieve a strategic objective in 2016 due to cash flow pressures.

The report also found similar results across all sectors, with around $6bn of growth opportunities falling through the cracks of Australian mid-sized businesses in the last year due to insufficient or variable cash flow.

The report drew on the insights of 355 mid-sized businesses ($2m-$300m) from 15 key industries, including the construction industry. It sheds new light on the challenges and opportunities of cash flow, which is frequently referenced as the number one concern for CFOs.

Key findings from the mid-sized construction industry ($2m-$300m turnover) include:

• 93% of businesses miss growth opportunities every six month or less, with the average cost of each missed opportunity worth $80,000
• 79% of construction business CFOs agree that credit is a good cash flow management tool
• Only 58% of CFOs use credit to manage cash flow, with nearly half using business loans (47%) or an overdraft facility (37%) and one-fifth using invoice discounting (21%)
• With extended cash flow in the business 46% of CFOs said they would fund staff training, 39% would hire staff, 37% would purchase new equipment and 21% would increase their investment in innovation and R&D.

It’s important mid-sized businesses have the methods in place to capitalise on every opportunity presented, especially in light of economic uncertainty rising to the top of the news agenda in recent weeks.

The full report can be found here.