According to the report, only half of SMEs have lately been able to acquire full funding.
According to a new survey, nearly one-in-two SMEs requested fresh finance in the last six months, and just half of those SMEs were successful in securing the whole amount they needed.
Small and medium-sized business owners, if you haven’t noticed in the last 18 months, are a tough bunch to deal with.
“I get knocked down, but I get up again…” says a Chumbawamba song from the 1990s. Well, life as a small business owner can be a little like that at times.
A study of 1750 SMEs countrywide done by East & Partners and Judo Bank indicated that 48.1 % of SMEs had asked for fresh finance in the last six months in the latest round of knock-downs.
Only 50.4 % of those SMEs were successful in obtaining the whole amount, 22% were moderately successful, and 27.7% were failed.
What else was discovered in the SME financing report?
It appears that the bigger you are, the more likely you are to be able to get a loan.
In the $1 million to $10 million turnover level, 36.5 % of businesses failed to get capital, compared to just 15.9% of enterprises in the $10 million to $50 million turnover area.
If you operate in the retail industry, you’ll have a harder time getting additional funding, with 44.4 % of retailers failing to get new funding compared to only 8.6% of builders.
Working capital (91.1 %), new plant and equipment investment (48.1 %), and COVID-19-related provisions, such as bridging loans, are the most common reasons for SMEs to borrow (45.6 % ).
One-fourth of SMEs also want new funds to expand their workforce (25.9 % ).
What we can do to assist your company
There’s no denying that many businesses are facing difficult times.
So, if you’re a small business owner in need of money, get in touch with us today and we’ll assist you to find funding.
The sooner we can talk about your alternatives with you, the better your company will be able to make it through 2021 and beyond.
To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at email@example.com
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