Three out of five SMEs say cash flow is critical to survival, giving brokers opportunities to support small business clients
- 86% of Australia’s small businesses have been impacted by COVID-19, though a number of industry sectors are thriving
- 75% of SMEs say tax cuts and less red tape (64%) would help their business
- 57% of SMEs say access to cash flow would help them better prepare for business shocks and subsequent recovery
- Brokers have an opportunity to explain cash flow finance options to SME clients, thereby diversifying their own income streams.
Sydney (19 May 2020): Research by leading online SME lender OnDeck Australia, highlights the impact of the COVID-19 pandemic on Australia’s small business community.
Eight out of ten (86%) SME owners say their business has been impacted by the Coronavirus pandemic – 47% report being ‘severely’ impacted.
However, the impact has not been negative across every sector.
Mr Robbie Fidler, National Broker Channel Manager, OnDeck Australia, said, “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.
“Among the leading beneficiaries are food delivery, online retailing, and furniture and office equipment[1]. These are industries where brokers may find SMEs are actively looking for finance to support business growth.”
Cash flow not stimulus is key to recovery
Three-quarters of SMEs (75%) would welcome tax cuts to support their business, accompanies by less red tape (64%) for SMEs.
Three out of five (57%) SMEs say access to cash flow would help their business better prepare for events such as pandemics, and support business recovery.
Mr Fidler said, “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.
However, there are steps SMEs can take to improve their cash flow, such as exploring innovative ways to bring revenue in – and this can apply to brokers too.
“Whether it’s an outdoor event staging firm reassigning its tradies to carve out wooden desks or a yoga company taking its downward dogs online, we’ve come across so many inventive SMEs who are determined to thrive rather than survive COVID-19[2],” Mr Fidler said.
“It is critical for brokers to reach out to their current and prospective SME clients, and explain the lending options available to individual businesses. 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,” concluded Mr Fidler.
ENDS
About OnDeck
OnDeck (NYSE: ONDK) is the proven leader in transparent and responsible online lending to small business. Founded in 2006, the company pioneered the use of data analytics and digital technology to make real-time lending decisions and deliver capital rapidly to small businesses online. Today, OnDeck offers a wide range of term loans and lines of credit customized for the needs of small business owners. OnDeck has provided over $13 billion in loans to over 110,000 customers in 700 different industries across the United States, Canada and Australia. In Australia, OnDeck is backed by leading accounting software provider MYOB and has a 5-star rating from Trust Pilot. For more information, visit www.ondeck.com.au
About the research
The independent research was conducted online in April 2020 by Honeycomb Strategy across more than 300 SME owners Australia-wide. The survey included SMEs with less than 50 employees, annual turnover of $50,000-$5 million, and in operation for at least 12 months.
About OnDeck’s COVID-19 Resource Hub
OnDeck’s COVID-19 Resource Hub provides SMEs with details about government stimulus packages, practical tips on managing a small business through uncertain times, case studies of inventive SMEs pivoting their expertise to survive the pandemic and recommended reading from trusted sources. To find out more visit www.ondeck.com.au/covid-19/
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Media Contacts:
Anthony O’Brien
Corpwrite Australia
+61 (0) 411 578 818
[1] https://www.alphabeta.com/
[2] https://www.ondeck.com.au/blog/covid-19/small-businesses-inspire-in-face-of-covid19/
