New research by online SME lender OnDeck Australia reinforces the notion that cashflow is crucial when it comes to business recovery.
The research reveals that 57 per cent of SMEs consider access to cashflow as the main factor that will help the venture head towards recovery. Broken down further, 69 per cent of SMEs that employ between six and 49 employees agree with the sentiment, along with 60 per cent of those with fewer than six employees, and 49 per cent of sole entrepreneurs.
The notion is also true among 62 per cent of SMEs with annual turnover above $200,000 and 52 per cent of SMEs with turnover below $200,000, both groups citing the need for healthy cashflow as a factor for their recovery.
“These results highlight just how critical cashflow is to SMEs, especially in these uncertain times,” Oliver Wade, Head of Marketing & Partnerships, OnDeck Australia, said. “The sector is facing extraordinary challenges, and many SMEs simply don’t have the depth of resources needed to recover from a prolonged period of disrupted trading conditions.
“The Morrison Government’s decision to extend JobKeeper payments until the end of March will definitely be welcomed by many SMEs, particularly when coupled with the extension of the Coronavirus SME Guarantee Scheme until June, which will provide SMEs with up to $1 million in funding options,” Wade added. “This will help to support small businesses successfully emerge from ‘hibernation’ and adapt to the new COVID-safe economy and invest for the future.”
The survey also noted that SME owners prefer to get in touch with another human being during the commercial finance process.
“Arranging funding to boost cashflow is something SME owners aren’t always familiar with,” Wade said. “Partnering with a broker can be helpful for SMEs especially in terms of confirming eligibility for the Coronavirus SME Guarantee Scheme. Teaming with a broker also leaves business owners free to focus on their enterprise, while their broker manages the loan application process and liaises with the lender on the SME’s behalf.”
