Commercial brokers on alert as SME financing demand surges

by Mike Wood12 Nov 2021

New research from SME fintech lender Prospa has indicated that demand for commercial financing is surging across Australia.

The study, carried out by RFi Group on behalf of Prospa, suggests that 37% of small businesses are in need of funds in the next 6-12 months, a number that grows to over 50% for those that are between two and five years old.

Those mid-aged SMEs are also the ones that need the most funding, with between $46,000 and $58,000 in financing required.

The demand is spread across several sectors, with standard financing arrangements such as asset finance for tools and equipment ranked alongside funding for digital transformation and restocking inventory after lockdown reopening as major drivers.

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“Positive sentiment is on the rise with restrictions relaxing in time for end of year trade, one of the busiest times of the year, reflecting that the nation is entering a phase of strong economic recovery,” said Roberto Sanz, national sales manager at Prospa. “However, 37 per cent of businesses require credit to get the business back on track.”

“An incredible 87% of small businesses believe that an opportunity would be lost without access to credit, which highlights the importance of readily available funding.”

“With demand for funds high, and small businesses requiring it fast, we encourage brokers to consider alternative lenders such as Prospa. We offer funding in 24 hours, and now offering 8 weeks no repayments until the end of the year, to ensure this time tomorrow businesses can recover and thrive.”

“Over the past few months, restrictions may have led many small business owners to be more controlled with their cashflow and leading to the delaying of purchasing decisions. Now as the nation reopens, we expect small businesses would require credit to retool, restock, and rehire to seize opportunities.”

“We launched Prospa Plus Small Business Loans last month, a product that was designed after feedback from our partners, enabling us to now offer loans of up to $500,000 with improved terms to ensure brokers can service more of their clients.”

“Our team are readily available to listen to the feedback of our partner community and provide them with the right tools to ensure we can service more small businesses together.”