What are SMEs' biggest concerns?

Ability to be agile with repayments cited as biggest driver of lender choice for small businesses in 2022

What are SMEs' biggest concerns?


By Mike Wood

SME lender Prospa has called out flexible loan repayments as one of the hot button trends to watch for commercial brokers in 2022, publishing research that suggests that a third of small businesses held flexibility as their main driver when choosing their lender.

Thirty-three per cent (33%) of respondents to the survey, carried out by RFi Group and commissioned by Prospa, said that they were likely to choose an alternative lender if flexible repayments were on offer, with the potential for business disruption cited as the main reasoning for their choice.

“Over the past two years, small businesses have been dramatically impacted by uncertain times and that has required them to be agile to stay afloat,” said Roberto Sanz (pictured), national sales manager at Prospa.

“The study highlights that many business owners now want to ensure they are protected from challenges that could arise over the year by partnering with a lender that will also be agile with repayments to give them the ability to work through the changing market conditions.

“With SMEs seeking flexible loan repayments, brokers should consider exploring alternative credit lenders with flexible repayments terms that come in a form of no repayments for a period of time or repayments that match business circumstances.

“These options will provide businesses with the confidence to make their repayments, as they are provided with more breathing space to manage their cashflow during the good times and challenging times.”

Many SMEs in Australia have described the current operating conditions as a ‘shadow lockdown’, with no restrictions on their business but a lack of public confidence that impacts on their ability to trade, as well as supply chain problems and staffing concerns.

“With many small businesses now fully operating, supply chain issues and staff shortages remain a great challenge early this year and it is difficult to understand when things will improve,” said Sanz.

“We’ve observed a high number of small business owners reach out to us for credit for orders that are double or even triple their requirements in an attempt to minimise disruption with supply chain issues or to offer higher wages to attract and retain employees.”

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