An SME lender has claimed that it is cash flow, not further stimulus, which is the key to economic recovery for Australia's small businesses.
While a survey conducted by OnDeck Australia revealed that three-quarters of SMEs would welcome tax cuts to support their business and 64% would like to see less red tape, the online lender feels strongly that small businesses need a more solid game plan than waiting for bureaucratic aid.
“Despite a raft of federal and state government stimulus, in the current uncertain environment, no SME can afford to pin its survival on hopes of tax cuts,” explained Robbie Fidler, OnDeck national broker channel manager.
Well over half of the SMEs (57%) indicated that access to cash flow would help their business better prepare for and weather events such as pandemics, as well as contribute to business recovery.
“It is critical for brokers to reach out to their current and prospective SME clients, and explain the lending options available to individual businesses,” said Fidler.
“It can come as a huge relief to SME owners to learn that there are products and strategies available that can invigorate cash flow and support the business through these difficult times.
“This also allows brokers to broaden their own revenue base by adding SME lending to their product suite.”
While more than eight out of ten SME owners (86%) communicated that their business has been impacted by COVID-19, with 47% report being ‘severely’ impacted, it hasn’t been the same story across every sector.
“While the Coronavirus outbreak has created extremely challenging conditions for many SMEs, a number of industries have experienced significant growth as a result of lockdowns,” said Fidler.
“Among the leading beneficiaries are food delivery, online retailing, and furniture and office equipment. These are industries where brokers may find SMEs are actively looking for finance to support business growth.”