Up to six out of ten small businesses associate mainstream banks with commercial lending, yet one in four small enterprises are likely to be knocked back by a bank.
- Industry research shows as many as 66% of small businesses associate the big four banks with commercial finance
- OnDeck research has found that among small businesses that have sought finance in the past, one in four have been rejected by the banks.
- Among those small businesses that have been successful obtaining bank finance, 25% have reported being negatively impacted by the time taken to be approved and receive funding.
OnDeck can have funding to approved small businesses in as fast as two hours.
Sydney 11th of July 2023: Leading small business lender OnDeck Australia confirms that while small businesses may think of the major banks as a source of finance, their loyalty is not rewarded.
Research by Momentum Intelligence[1] reveals that as many as 66% of small businesses think of Australia’s largest banks when it comes to sourcing commercial finance.
Yet in a separate OnDeck survey, one in four (25%) small businesses say their application for finance has been rejected by a mainstream bank. This figure rises to 38% for small businesses that have been in operation less than five years.
Moreover, among small businesses that have applied for bank finance in the past, one-quarter (25%) claim to have been negatively impacted by the time taken to secure finance.
Among the negative impacts, OnDeck’s survey respondents noted:
- 43% – Delays in deliver of products
- 37% – A slowing or halt of normal business operations
- 11% – Delays in engaging new staff.
Mr Cameron Poolman, CEO of OnDeck Australia, said, “The major banks do a great job of promoting their brand. What they are not so good at is meeting the needs of Australia’s small business community.
“As a specialist small business lender, OnDeck understands the need for a streamlined application process and rapid response time.”
OnDeck’s Lightning Loans offer a fast-tracked application, with just six months of bank statements required to be uploaded to the secure OnDeck portal. Funding decisions for loans for up to $150,000 are made in 30 minutes or less, with funds made available to approved applicants in as little as two hours.
“We know that time is of the essence for small business owners. Time spent of paperwork-heavy applications is time away from the business, and a protracted approval process can mean lost opportunities for small enterprises,” said Mr Poolman.
“That’s why OnDeck helps small enterprises skip the ‘slow no’ of the major banks, and gains access to the funds they need sooner,” concluded Mr Poolman.
About OnDeck
OnDeck Australia is the proven leader in transparent and responsible online lending to small business. Since launching in Australia in 2015, OnDeck Australia’s focus has always been on supporting small businesses with access to fast, efficient unsecured finance.
Today, OnDeck Australia offers a wide range of term loans customised for small business owners’ needs. OnDeck Australia is focused on taking the friction out of business lending offering unsecured business loans from $10,000 – $250,000 across 6 – 24-month terms. We’ve helped thousands of small businesses across a range of industries access funding quickly and easily, while maintaining a 4.8/5 star TrustPilot rating.
In 2021, OnDeck Australia 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 Australia 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
Media Contacts:
Anthony O’Brien
Corpwrite Australia
+61 (0) 411 578 818
[1] Momentum Intelligence Brand Intelligence – SMEs on Business Lenders Survey 1-31 March 2023
