Loan approvals skyrocket by 32% MoM, unleashing broker opportunities
In February, business confidence soared with a whopping 32% surge in monthly loan approvals.
This result aligns with our recent small business survey conducted independently by Octopus Group, where over one-third rated their enterprise’s financial health as ‘excellent’ or ‘very good,’ signalling a positive trend.”‘
Encouragingly, the surge in loan approvals extends beyond a specific sector, with lending growth recorded across diverse industries. Industries like manufacturing, health services, transport, and trade have been at the forefront, driving the demand for commercial loans.
Crucially, the broker channel remains a major contributor to this lending upswing, with an impressive 70% of approved loans originating from brokers.
Nick Reily Head of Partnerships at OnDeck Australia, said, “This underscores the continuous opportunities available for brokers in the commercial lending space, reinforcing their pivotal role in facilitating financial transactions and fostering growth for their small business clients.
80% of small businesses confident of meeting financial obligations
The increase in OnDeck’s approvals also aligns with independent research we commissioned recently, revealing that a substantial eight out of 10 (80%) small business owners express confidence in their enterprises’ ability to meet financial obligations.
Nick, said, “It’s truly inspiring to witness such a widespread sense of positivity and confidence within Australia’s small business community.
“Following years of grappling with pandemic-related lockdowns and a relentless series of interest rate hikes by the Reserve Bank of Australia, it’s evident that the small business sector has faced unparalleled challenges.
Nevertheless, the 32% month-on-month growth in loan approvals by OnDeck is substantiated by our survey results, indicating that small businesses have emerged from these difficult times stronger and more prepared to tackle future financial responsibilities.”
Extensive broker support
As inflation cools and interest rates begin to head south, small businesses need to consider how to take advantage of changing economic conditions.
OnDeck’s Lightning Loans® are available for up to $175,000, with funds available in as fast as two hours to approved applicants.
OnDeck supports brokers who make the move into commercial lending with a simple accreditation process backed by the support of an experienced BDM team.
Nick said “We understand that Australian small businesses are actively seeking rapid and efficient access to finance. However, as many brokers are aware, traditional lenders frequently neglect to prioritize the specific needs of small businesses within the commercial lending landscape.
“Our research acknowledges the advantageous position of small businesses to pursue borrowing and seize growth opportunities in 2024, while we are well-positioned to offer the support and flexible lending options to help brokers provide the solutions their small business clients are looking for to achieve growth,” concluded Nick.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.
Important information from OnDeck:
* Loan amounts and loan terms are for illustrative purposes only, which the lender may adjust in its sole discretion without notice. Eligibility and approval are subject to a standard credit assessment and the applicants’ business circumstances which may include information such as industry, time in business, estimated revenue and other data. Not all loan amounts, term lengths or rates will be available to all applicants. Loans are subject to lender approval. Fees, terms and conditions apply.
^The timeframe required to process and fund loan applications may vary for each individual application. Factors such as the completeness and accuracy of application materials, verification processes, and external circumstances can influence the processing & funding timelines.
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