The research carried out by online SME lender OnDeck Australia reveals that 57% of business owners believe access to cash flow is crucial to getting their business back on track. Of those who answered, 69% were those who employ between six and 49 employees, 60% had fewer than six employees, and 49 per cent of sole traders.
62% of business with annual turnover above $200,000 and 52% with turnover below $200,000, also stated that healthy cashflow is crucial for their recovery.
Oliver Wade, Head of Marketing & Partnerships, OnDeck Australia, said: “These results highlight just how critical cashflow is to SMEs, especially in these uncertain times. The sector is facing extraordinary challenges, and many SMEs simply don’t have the depth of resources needed to recover from a prolonged period of disrupted trading conditions.
“The Morrison Government’s decision to extend JobKeeper payments until the end of March will definitely be welcomed by many SMEs, particularly when coupled with the extension of the Coronavirus SME Guarantee Scheme until June, which will provide SMEs with up to $1 million in funding options.”
The survey also found that business owners prefer to speak to someone when seeking commercial finance.
“Arranging funding to boost cashflow is something SME owners aren’t always familiar with,” Wade said. “Partnering with a broker can be helpful for SMEs especially in terms of confirming eligibility for the Coronavirus SME Guarantee Scheme. Teaming with a broker also leaves business owners free to focus on their enterprise, while their broker manages the loan application process and liaises with the lender on the SME’s behalf.”
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Last updated: 30th July 2020
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