An SME lender has urged brokers to be mindful of the opportunity presented by small businesses in need of cashflow funding over the coming festive season.
OnDeck Australia has highlighted that the chance to grow their commercial loan book could be a welcome relief for mortgage brokers during what often proves to be a quiet period for home loans.
“Consumer confidence is currently at a 10-year high, and the 2020 festive trading season is expected to be big, so the next few weeks offer a much-needed chance to make up for some of the revenue lost in 2020. But SMEs need fast access to cashflow funding to manage the additional costs of the season,” explained Cameron Poolman, OnDeck Australia CEO.
Being mindful of small businesses' needs is particularly important as OnDeck’s research showed that 55% of the SMEs surveyed said they have been negatively impacted in the past by major annual events such as Christmas.
The top five negative outcomes were:
- 41% - loss of revenue
- 41% - slowed or halted normal business operations
- 22% - delays in the delivery of products or services
- 20% - increased costs
- 13% - loss of customers to competitors.
Further, 57% communicated that access to cashflow would help their business better navigate such a disruption.
“With improving confidence combined with festive season demand, SMEs need access to cashflow support fast. Waiting several weeks for approvals from the banks just won’t work. As an online, SME specialist lender, OnDeck provides a simple, streamlined application process, that enables us to provide funding to an SME in as little as one working day,” Poolman added.
“As we head towards the end of the year, this is an exceptional opportunity for brokers to step into the commercial lending market, and hit the ground running in 2021 with an expanded service proposition.
“This is also a valuable opportunity for brokers to maintain – and grow – their own revenue by diversifying into small business loans, during what can be a quieter season in the home loan market.”