Online SME lender OnDeck Australia reports a 35% increase in loan applications indicating increased business confidence and greater appetite for credit.
- Online SME lender OnDeck Australia records 35% rise in loan applications between August and September.
- The increase in loan activity coincides with the 1 October 2020 launch of OnDeck’s new marketing campaign that encourages SMEs to make 2021 a year to remember.
- The campaign will involve a multi-channel strategy and draw attention to OnDeck’s free Know your Score service for SMEs.
Sydney (13 October 2020): Leading online SME lender OnDeck Australia, has recorded a 35% jump in loan applications between August and September, indicating improved confidence across the small business sector and increased demand for commercial funding.
Mr Cameron Poolman, CEO of OnDeck Australia, said the jump in loans applications comes as small businesses prepare for the peak festive season.
“Trading conditions for small businesses have been hugely disrupted by the COVID-19 pandemic. But the 35% jump in loan applications experienced by OnDeck suggests that SMEs hold a bright outlook for the future, and are taking positive steps towards recovery,” said Mr Poolman.
“Along with the upcoming holiday period, we are also seeing SMEs keen to take advantage of the super-sized instant asset write off announced in the 2020/21 Federal Budget, to improve productivity or expand capacity,” noted Mr Poolman.
Ms Diane Tate, CEO of the Australian Finance Industry Association (AFIA), which represents over 100 different providers of finance across Australia, says she is delighted to see an uptick in SME loan applications.
“Small business is the life blood of the Australian economy – and a major employer. To see SMEs feeling more optimistic about the road forward is a good barometer for the recovering health of the business sector and the economy more broadly,” said Ms Tate.
OnDeck launches ‘Open for Business’ campaign
The 35% rise in OnDeck’s loan applications coincides with the 1 October launch of OnDeck’s ‘Open for business’ marketing campaign, designed to increase awareness of lending alternatives beyond the major banks.
“OnDeck’s research has shown that one in four SMEs have been rejected for bank finance. Even among those that have secured finance from their bank, 27% say they have been negatively impacted by the time taken to secure funds,” said Mr Poolman.
“Our ‘Open for Business’ marketing campaign is designed to let SMEs know that alternative lending options are available that can fast-track the application and funding process to as little as one business day without compromising on responsible lending. It’s all about helping SMEs make 2021 a year to remember.”
The campaign will involve a multi-channel strategy combining social media, banner advertising and public relations, while also drawing attention to OnDeck’s “Know your Score” service, which allows small businesses to check their credit score online at no cost.
“As part of the campaign, OnDeck will be particularly active in Western Australia and South Australia, with a message around growth at a local level, as SMEs in those state emerge from COVID-19 restrictions,” said Mr Poolman.
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 Recovery Hub
OnDeck’s COVID-19 Recovery 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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