New research by online small business lender OnDeck Australia has revealed a high level of demand for brokers’ service across the nation’s small business community.
Six out of 10 small businesses said they would consider using a broker for their future financing needs, with this figure rising to 72% in Queensland, the survey found.
There were several benefits to partnering with a broker, with wanting the advice and opinion of a broker (59%) a top driver for small businesses to seek broker support. This was followed by having found a broker helpful in the past (45%), wanting to get the best price possible on finance (41%), lacking time to independently arrange financing (31%), and needing finance urgently (12%).
A massive 86% of small businesses also said they would return to their broker for support organising finance in the future.
“Our research findings are a big pat on the back for Australia’s brokers, who are obviously delivering real value to the nation’s small businesses,” said Cameron Poolman (pictured above), CEO of OnDeck Australia. “I would encourage small business owners who have not yet partnered with a broker to discover just how streamlined the process of applying for, and securing, business finance, can be when you have a broker on your side.”
OnDeck’s research highlights opportunities for brokers who expand into small business lending.
“When six out of 10 small businesses say they are keen to use a broker, there are clearly exceptional opportunities for brokers to diversify into commercial finance,” Poolman said. “As testimony to the strength of demand, OnDeck recorded 43% growth in loan originations in the first six months of 2022 alone.”
For those uncertain about commercial lending, Poolman said they can rest assured that OnDeck’s accreditation process is very straightforward plus there’s free marketing collateral to support their step into commercial lending.
“OnDeck’s technology-driven approach makes loan applications easy,” he said. “We require just six months of bank statements to be uploaded to OnDeck. From here, our bespoke KOALA Score credit assessment algorithm drives a turbo-charged funding decision.”
OnDeck’s use of technology allows applications for the lender’s unsecured Lightning Loan to be assessed in as fast as one hour, with funding up to $150,000 delivered to approved applicants in as little as two hours.
“It’s interesting that small businesses cited both lack of time and urgent need for funding as two of the benefits of using a broker,” Poolman said. “As a fintech lender, OnDeck’s fast, efficient application process is getting deals done sooner, which is great for small businesses – and their brokers.”