New research by online small-business lender OnDeck Australia reveals that 75 per cent of Australia’s small businesses are confident about their health and stability, an indicator that majority of Australian small businesses are in great shape and well-placed to manage financial obligations.
Moreover, 34 per cent of small businesses have rated the health of the business as ‘excellent’ or ‘very good’ and only 24 per cent believe the overall health and stability of the business is ‘below average’.
Reflecting the mood of optimism, OnDeck also found that a vast majority (80 per cent) of small businesses have stated that they are well-placed to meet their financial obligation in 2024.
On a related note, OnDeck Australia also revealed that there has been a 32 per cent month-on-month growth in loan approvals that has been recorded across a broad range of sectors with manufacturing, health services, transport and trade leading the way.
The lender noted that the growth in loan approvals is also a result of the continued rise in confidence among small businesses in the past year.
“It is incredibly heartening to see such overwhelmingly positive views and confidence among Australia’s small-business community,” Cameron Poolman, CEO of OnDeck Australia, said. “After several years of pandemic lockdowns followed by an unrelenting string of official rate hikes by the Reserve Bank of Australia, it is fair to say that the small business sector has had to deal with unprecedented challenges.
“[Our] growth in loan approvals, backed by our survey findings, highlight that small businesses have come through a tough time, stronger and better-placed to manage future financial obligations,” Poolman added.
With inflation cooling and interest rates beginning to head south, Poolman urged small businesses to take into consideration how to take advantage of changing economic conditions, including researching lenders carefully when looking for loans to fund growth.
“Fast, efficient finance is highly sought-after by Australian small businesses, yet too many lenders do not prioritise the needs of small business,” Poolman concluded.
