Research by OnDeck Australia shows nine out of 10 small businesses would return to a broker for help arranging commercial finance.
- 60% of small businesses would consider using a broker in the future.
- 86% of small businesses that have previously used a broker would return to their broker for commercial lending.
- Six out of 10 (59%) small businesses that would return to a broker say the key driver is being able to access the broker’s advice or opinion.
Sydney: New research by leading online small business lender OnDeck Australia confirms a high level of demand for brokers’ service across the nation’s small business community.
The survey found six out of ten (60%) small businesses surveyed would consider using a broker for their future financing needs – a figure that rises to 72% of small businesses in Queensland.
Partnering with a broker offers a variety of benefits to small business, with those surveyed citing a number of drivers for seeking a broker’s support including:
59% – wanting the advice and opinion of a broker
45% – have found a broker helpful in the past
41% – wanted to get the best price possible on finance
31% – lack of time to independently arrange financing
12% – finance was needed urgently.
The overwhelming majority – 86% of small businesses would return to their broker for support organising finance in the future.
Mr Cameron Poolman, CEO, OnDeck Australia, said, “Our research findings are a big pat on the back for Australia’s brokers, who are obviously delivering real value to the nation’s small businesses.
“I would encourage small business owners who have not yet partnered with a broker to discover just how streamlined the process of applying for, and securing, business finance, can be when you have a broker on your side.”
OnDeck’s research highlights opportunities for brokers who expand into small business lending.
“When six out of 10 small businesses say they are keen to use a broker, there are clearly exceptional opportunities for brokers to diversify into commercial finance. As testimony to the strength of demand, OnDeck recorded 43% growth in loan originations in the first six months of 2022 alone,” said Mr Poolman.
“Brokers uncertain about commercial lending can rest assured that OnDeck’s accreditation process is very straightforward. We provide free marketing collateral to our broker partners to support their step into commercial lending.
“OnDeck’s technology-driven approach makes loan applications easy. We require just six months of bank statements to be uploaded to OnDeck. From here, our bespoke KOALA Score credit assessment algorithm drives a turbo-charged funding decision,” added Mr Poolman.
OnDeck’s use of technology allows applications for the lender’s unsecured Lightning Loan to be assessed in as fast as one hour, with funding up to $150,000 delivered to approved applicants in as little as two hours.
“It’s interesting that small businesses cited both lack of time and urgent need for funding as two of the benefits of using a broker. As a fintech lender, OnDeck’s fast, efficient application process is getting deals done sooner, which is great for small businesses – and their brokers,” concluded Mr Poolman.
OnDeck is the proven leader in transparent and responsible online lending to small business. Since launching in Australia in 2015, OnDeck’s focus has always been on supporting small businesses with access to fast, efficient unsecured finance.
Today, OnDeck offers a wide range of term loans and lines of credit customised 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
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.
In 2021, OnDeck also launched Lightning Loans, which enables the decisioning of loans up to $150,000 in as fast as 30 minutes, and funding in as fast as two hours. For more information, visit www.ondeck.com.au
About the Research
The independent research was conducted online in April 2022 by Octopus Group across more than 300 small business owners Australia-wide.
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