Why now is the best time to apply for a small-business loan
For the past year, small businesses have been battling tirelessly against ever-changing restrictions, lockdowns, and a tumultuous economy. But as vaccine rollouts are picking up the pace, Australians are starting to see a light at the end of the tunnel. Many business owners are beginning to wonder what the prospective end of the pandemic would mean for their small businesses – find out what the research is saying.
The small-business loans landscape in Australia right now
Research released earlier this year showed that fewer Australian small businesses are applying for loans right now. The same research also revealed that while small businesses are taking advantage of business loans much less at the moment, medium-sized businesses are borrowing at the same rate as they were pre-pandemic and large businesses have increased their borrowing significantly.
Experts suggest that the government-funded financial incentives and initiatives for small businesses are taking away the need for small businesses to seek funds through business loans. One of these initiatives is called the Payment Times Reporting Scheme and was implemented just this year. The scheme requires large companies to disclose publicly how quickly they compensate small-business providers for their goods and services. This has forced many companies to pay small businesses in a much more timely manner. The Payment Times Reporting Scheme is just one example of many initiatives that are giving power to small businesses and allowing them to succeed once the financial schemes introduced in the pandemic are stopped.
Small businesses can easily access business loans at the moment
In the past few years, there has been a significant rise in the popularity of non-bank lenders – a trend that doesn’t appear to be slowing down anytime soon. This poses a significant threat to big banks. Prior to and throughout the pandemic, it has been difficult for small businesses to access loans. Recent research exposed that big banks have been dismissing around 25 per cent of small-business loan applications during the pandemic. The reason non-bank lenders are becoming the golden standard for lending is simple: small businesses can easily access a loan from a non-bank lender, and they know they aren’t getting ripped off. As non-bank lenders slowly but surely cement their stance as the go-to lenders for small businesses, it’s easier than ever to access small-business loans. Non-bank lenders have small businesses’ best interests at heart and tend to advocate for the business every step of the way.
The outlook is good for Australian small businesses
With trustworthy, reliable non-bank lenders on the rise, and government initiatives setting small businesses up for success, now is the time to apply for a small-business loan. Lenders who actually care about businesses are no longer difficult to come by.
If you want to contact a broker please go to www.smefundinghub.com and provide your contact details. Alternatively, contact us at info@smefundinghub.com
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Article source: Inside Small Business https://insidesmallbusiness.com.au/finance/why-now-is-the-best-time-to-apply-for-a-small-business-loan
