Search
  • SMI Financial Solutions

More than a quarter of SME businesses knocked back for finance


As if small and medium-sized businesses weren’t already facing an uphill battle this year; now it turns out that more than a quarter were knocked back when they applied for finance in recent months. Here’s how we can help.


The latest Sensis Business Index – which surveyed 1,015 businesses in the first week of August – shows 26% of businesses that applied for finance over the past three months were knocked back.


The figure was worse in the bush with 37% of those applying in regional areas declined, compared to 25% in cities.


Additionally, fewer and fewer businesses are applying for finance.


The percentage of businesses that applied for finance dropped to 13%, down from 16% in March and 17% in December 2019.


How we can help


All of the above figures highlight the importance of having a broker like us guiding you through the process.


Here’s what small business lender OnDeck has to say in regards to its recent research on the importance of having a trusted professional to speak to while applying for finance.


“Our survey clearly highlights that SMEs place significant value on the input of a broker in the commercial finance process,” says Robbie Fidler, OnDeck Australia national broker channel manager.


“Brokers can act as a conduit between lenders and SME owners, providing the person-to-person link that is so valued across the SME community.”


Additionally, SME lender Scottish Pacific recently highlighted the important role brokers can play in helping businesses prepare for that September “cliff” you’ve probably heard about.


“When COVID-19 hit and JobKeeper and other initiatives were put in place, September seemed a long way away – it’s only a week away now, and small businesses need to act,” says Scottish Pacific’s General Manager for Victoria, Jane Starkins.


“We are having regular conversations with accountants and brokers who realise their clients need funding in place to pay expenses they have been deferring, including rent, asset finance, PAYG, superannuation and payroll tax.”


Ms Starkins adds that now is an ideal time for business owners to find new funding paths that harness the value of assets already in their business, such as their sales invoices or plant and equipment.


“Business owners are reluctant to extend their borrowings. They are busier than ever trying to navigate the COVID-19 environment, which means accountants and brokers have a crucial role to play in making them aware of other funding solutions,” she says.


Get in touch


If you’re an SME owner in need of finance solutions to get through the months to come, get in touch.


The sooner we can discuss your options with you, the better placed your business can be to avoid the September cliff and thrive beyond.


Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

2 views

SMI Financial Solutions Pty Ltd ABN 92 154 155 307 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd, ABN 47 097 797 049, AFSL 236523.  Christopher Smith (478941) and SMI Financial Solutions Pty Ltd (418006) are authorised for Credit Services with outsource financial ACL384324. Infocus is not liable for any credit services provided by either entity. Information published on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a qualified adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances.

© 2020 by SMI Financial Solutions Pty Ltd.

Disclaimer: Your full financial situation will need to be reviewed prior to acceptance of any offer or product.