There are more possibilities for SMEs to borrow money, but how do you get access to them

Despite the fact that many small business owners are concerned about their ability to obtain financing, a flurry of new lenders and products is fast expanding the possibilities available. According to the Productivity Commission, brokers play a significant role in the success of firms.

According to a new report by the Productivity Commission, changes in lending markets over the last decade have resulted in a wide range of business finance options that do not require property as security.

One of the major barriers to SME owners obtaining these new financial choices is a lack of understanding of them.

According to the Productivity Commission, this is where a broker with up-to-date market information can help your company succeed.

Credit choices for small businesses may not be well understood and SMEs may not be confidence in new lending possibilities. According to the Productivity Commission, “brokers can assist them in locating acceptable credit solutions.”

“These possibilities include unsecured financing and borrowing against alternative collateral such as automobiles, machinery, and intangible assets (such as invoices and other expected receipts).

Why are there more options for SMEs to finance?

According to the Productivity Commission, changes in prudential requirements have made lending to SMEs less appealing to major banks while also providing opportunities for new and existing non-bank lenders.

With the rise of fintechs and more readily available borrower data, a greater choice of lending options for SMEs has emerged, particularly in addition to traditional property-secured loans.

Many lenders have been able to lend to SMEs without the security of property by combining new data sources with innovative analytical techniques (such as artificial intelligence and machine learning).

While most SMEs are aware of banks as a source of financing, they are less aware of the newest choices.

What we can do to assist your company

We’re always learning and improving as brokers to ensure that we’re up to date on the latest funding alternatives and players in the SME finance industry.

According to the research, “brokers are required to have current market knowledge and participate in regular training to stay up to date on new lenders and products.”

“Conferences, workshops, and webinars, for example, are held by aggregators and industry organisations to help brokers better grasp SME loan possibilities.”

As a result, the Productivity Commission emphasizes the importance of brokers to busy SME owners.

According to the report, “brokers can play an important educational role by connecting borrowers to lenders, particularly for those SME customers who do not have the time or inclination to conduct extensive market research.”

So, if you need money for your small business but don’t know where to start, get in touch with us right away.

As the number of financial choices for SMEs like yours grows, we’d delighted to walk you through some of the options accessible to you.

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


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