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Only two out of five small businesses have the cashflow needed to make the most of lockdowns ending

by OnDeck Australia,   Nov 04, 2021

Research by OnDeck Australia confirms cashflow can be the make or break factor that allows small businesses to celebrate the lifting of lockdowns.

  • Just two out of five (40%) small businesses have the cashflow to handle lockdowns lifting – dropping to 21% of businesses with 26-50 staff.
  • 10% of small businesses nationally say lockdowns have depleted their cash reserves, rising to 14% of Victorian small businesses.
  • Only one in two (51%) small businesses in NSW have the trading stock necessary for the post-lockdown period, falling to 41% of Victorian small businesses.

Sydney (date): Research by leading small business lender OnDeck Australia confirms that many small businesses do not have adequate cash flow to make the most of lockdowns being lifted.

Across the nation, only two out of five (40%) small businesses say they have sufficient cashflow to navigate the end of lockdowns. This figure falls to 21% of small businesses employing 26-50 staff.

For 10% of small businesses, extended lockdowns have depleted cash reserves. This rises to 14% of small businesses in Victoria, which have endured extensive lockdowns throughout the COVID-19 pandemic.

As we head into the festive season – the peak trading period of the calendar for many small businesses, just over half (51%) NSW small businesses report having sufficient stock to make the most of the lifting of lockdowns. The data is even less favourable for small businesses in Victoria, with just 41% saying they have adequate supplies of trading inventory.

Mr Nick Reily, National Partnerships Manager at OnDeck Australia, says, “Lockdowns have clearly taken a toll on the small business communities of NSW and Victoria. Cash reserves have been squeezed, yet maximising the opportunities offered by the end of lockdowns can involve spending money to make money. It’s a conundrum that could inhibit the ability of many small businesses to bounce back from lockdowns.”

“A cashflow squeeze doesn’t just impact a business’s supply of trading stock,” added Mr Reily. “Our research also revealed that one in four small businesses need to hire more staff post-lockdown, and less than half (44%) have the necessary marketing in place to promote their business post-lockdowns.

“As we speed towards the festive season, small businesses need accelerated access to cashflow funding if they are to use the peak trading period to make up for lost revenue.

OnDeck’s Lightning Loans offer a fast-tracked application and approval process for loans up to $100,000, with funding decisions in 30 minutes or less, and funds made available to approved applicants in as little as two hours – faster than any other lender in the market,” said Mr Reily.

 

About OnDeck

OnDeck is the proven leader in transparent and responsible online lending to small business. In 2021, OnDeck launched The KOALA Score risk-prediction model that draws on big data, predictive analytics, plus data from multiple credit reporting agencies to enable more Australian small businesses to be approved for a commercial loan.

Today, OnDeck offers a wide range of term loans and lines of credit customized for small business owners’ needs. OnDeck has provided over $US13billion in loans to over 110,000 customers in many different industries, and it has a 5-star rating from Trust Pilot. For more information, visit: www.ondeck.com.au

 

Media Contacts:

Anthony O’Brien

Corpwrite Australia

+61 (0) 411 578 818

anthony@corpwrite.com.au

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