How will your company recover after 2020?

You're not alone if you're anxious about how to recover from the horror show that was in 2020. According to a study, two-thirds of Australian small and medium enterprises share this sentiment.

Many SMEs are asking how they will recover from the rigors and strains of the previous year as they look forward to “COVID-normal” in 2021.

According to studies from business banking analysis company East & Partners, as much as 65 percent of firms are concerned about having a clear recovery route.

Despite the government’s assistance during the pandemic, over half of the firms polled (47 percent) indicated they had trouble getting government-guaranteed loans during COVID-19.

COVID-19 aggravates pre-existing issues.

According to the ScotPac-commissioned research, these COVID-specific worries come at a time when businesses are experiencing a significant increase in persistent problems.

The largest difference in the last 18 months has been firms finding funders more difficult to deal with than usual, with 56 percent of businesses reporting this as a difficulty, up from 47% in 2019.

There has also been a significant increase in the number of firms who are dissatisfied with their funder’s performance (22%, up from 16%).

Loan restrictions (84 percent), needing to provide property security (80 percent), and a lack of flexibility are the top three worries (74%).

A growing number of businesses are seeking expert assistance.

SME dependence on trustworthy advisors surged during the horror show of 2020.

During the pandemic, 53% of SMEs depended more on their primary advisors, such as their broker or accountant.

The great majority of respondents (82%) stated it had a positive impact on their firm.

The road to rehabilitation

“Successfully navigating out the other side of the COVID crisis demands SME owners not to procrastinate making the hard decisions regarding their business,” the research concludes.

“These difficult decisions include determining the viability of the business, finding the best way to fund the business, deciding how to deal with the end of JobKeeper (if not for themselves, then for the impact on their supply chains), and planning for what will happen when ATO debts are enforced and other deferred debts become due.”

If you’re having problems navigating any of these difficult issues, please contact us right away. We’re here to assist you to explore your business’s financing and funding options.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au


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