7 Signs Your Kids’ Business Might Need Finance (And How You Can Help Without Just Handing Over Cash
If you’re a Baby Boomer, there’s a good chance your children are now running their own businesses – or seriously thinking about it.
You’ve worked hard to build your own financial security, and you probably don’t want to simply become “the Bank of Mum & Dad”. At the same time, you don’t want to see a good opportunity pass your kids by just because cash is tight.
The good news? Sometimes the answer isn’t you dipping into your savings – it’s about helping your kids recognise when professional finance might be appropriate, and connecting them with the right people.
Here are seven common signs that a business may benefit from a loan, equipment finance or other funding – plus some simple conversation starters you can use.
1. The business is growing faster than the cash in the bank
Many successful businesses hit a point where demand is growing faster than cash flow. Your kids might be:
- Taking on more orders or contracts than usual
- Talking about hiring staff or moving to bigger premises
- Excited about new customers, but worried about “how we’re going to fund it”
Why this can be a good time for finance
Growth often needs working capital – to cover wages, stock or setup costs until the new income comes in. The right facility can help them say “yes” to opportunities instead of turning them away.
How you might gently open the conversation
- “It sounds like demand is really growing – do you ever feel like cash flow is struggling to keep up?”
- “Are you planning any upgrades, extra staff or a new location this year?”
- “Have you spoken to anyone about short-term finance so you’re not funding everything from your own pocket?”
2. Their equipment is getting old – or breaking down
Every business relies on tools: vehicles, machinery, computers, medical or trade equipment. Watch for comments like:
- “The van’s back in the workshop again.”
- “This machine’s well past its best.”
- “We really should upgrade, but it’s a big lump of money.”
Why this can be a good time for finance
Equipment and asset finance can spread the cost of new vehicles or machinery over time, preserving cash in the business while improving reliability and productivity.
Conversation starters
- “How are your vehicles and equipment holding up – are any major replacements coming up?”
- “If you could upgrade one thing tomorrow to make life easier, what would it be?”
- “Have you looked at finance options that spread the cost so it doesn’t smash your cash flow?”
3. They’re constantly stressed about cash flow
Even profitable businesses can experience cash-flow pressure, especially if:
- Customers take a long time to pay
- They rely on overdrafts or personal funds to get through the month
- Upcoming tax or BAS bills are causing anxiety
You might hear things like:
“Everyone pays us late”, “We’re okay… as long as these invoices come in”, or “The next BAS is going to hurt”.
Why this can be a good time for finance
Short-term or flexible funding can help smooth the ups and downs – so they’re not worrying about paying staff, suppliers or the ATO.
Conversation starters
- “Do your customers take longer to pay than you’d like?”
- “How do you usually handle slower months or big bills?”
- “Would it help to talk to someone about funding that smooths out those ups and downs?”
4. They’re planning big changes to the business
Sometimes your kids might be thinking about:
- Buying out a business partner
- Taking over another business
- Moving from renting to owning their premises
- Restructuring into a new company, trust or group
These are big steps with big financial implications.
Why this can be a good time for finance
Strategic changes often require a lump sum – and the right finance structure can make the difference between “too hard” and “doable”.
Conversation starters
- “Are you planning any major changes to the business this year?”
- “If you had the chance to buy a partner out or purchase a competitor, would you take it?”
- “Have you thought about owning your business premises instead of leasing long term?”
5. Their industry is changing – and they need to keep up
Many industries are facing new regulations, technology shifts or sustainability expectations. Your kids might be talking about:
- New standards or compliance requirements
- Tenders or contracts that require upfront investment
Going greener or more efficient to win (or keep) clients
Why this can be a good time for finance
Funding can help them invest in updated technology, greener equipment or capacity needed to win important contracts – without draining existing cash.
Conversation starters
- “Are there any new contracts or industry changes you’re trying to get ready for?”
- “Would newer or greener equipment help you stay competitive or meet regulations?”
6. They have multiple loans that feel messy or expensive
As businesses grow, it’s common to end up with a mix of old equipment loans, car finance, and other facilities with different rates and terms.
Signs to listen for:
- “We’ve got a few loans floating around – it’s hard to keep track.”
- “Repayments feel like they’re everywhere.”
“We’re stuck on old interest rates, I think.”
Why this can be a good time for finance
Refinancing can simplify repayments, reduce interest costs or remove looming balloon payments. Sometimes it’s about tidying things up rather than borrowing more.
Conversation starters
- “Have you reviewed your existing finance recently to see if there are better deals?”
“Would simplifying your loans into fewer, clearer repayments make life easier?”
7. They’re confused about interest rates and lenders
RBA rate movements and a crowded lending market can be confusing – especially when business owners are already juggling a lot.
Your kids might say:
- “I’ve no idea if our rate is good or not.”
- “Every bank seems to say something different.”
Why this can be a good time for advice
There are many lenders and products out there – and the “obvious” option isn’t always the best fit. Having a specialist on their side can save time, money and stress.
Conversation starters
- “Do you know exactly what rate you’re paying on your business loans?”
- “Would it help to have someone independent compare lenders for you?”
How you can support your kids (without being the lender)
Here are three practical ways to help:
- Be a sounding board, not a bank.
Use the questions above to help them think more strategically about finance – instead of simply asking for a loan from you. - Encourage them to speak with a finance specialist.
A good adviser can look at their full situation – business, equipment and sometimes personal facilities – and outline options they might not know exist. - Offer to join the first conversation.
If your kids want, you can sit in on an initial call with a broker or adviser. You don’t have to commit any of your own money – just your experience and calm head.
Where Quinntessential Finance fits in
At Quinntessential Finance, we work with business owners (and often their parents) to:
- Identify the right type of funding – business loans, working capital, equipment finance or refinancing
- Structure facilities so they support cash flow, not strain it
- Navigate the growing range of lenders and products on the market
If any of the signs above sound like your children’s situation, you don’t need to diagnose the perfect solution.
You only need to say:
“This might be worth a quick chat with Quinntessential Finance – they look at this stuff all day.”
We’ll take it from there.
