Whether you’re a startup, an SME, or an established brand, you once doubted about taking a business loan for worrying that you might not meet repayments.
If so, fret not, since you’re not the only one doubting about commercial loans. It’s a pretty common concern among Australian businesses. But new and promising reports surfaced that could help you shake your fear off.
The recent COVID-19 pandemic shook the Australian market and left many businesses with hardly any cash flow. If you’re one of them, you might be wondering what other options you have left to keep your business afloat.
Recent reports by the Australian Banking Association stated that SMEs received a total lending amount of up to $10 billion as of August 2021. That’s roughly a 27% increase from the previous year.
In other words, more than 50% of all SMEs have a lending or financing service/product. More SMEs will sign up for financing in the future, so it’s safe to say that it’s something many businesses do.
Commercial loans and finance products also come in all shapes and sizes to suit different businesses and SMEs.
How daunting do SMEs find it to repay loans?
While 2021 wasn’t the best year for most Australian businesses, only one in six SMEs find it very difficult to pay back their mortgages. Moreover, roughly 40% of brands say it’s easy to repay their commercial loans, 36% were indifferent about loan repayments.
These businesses are generally considering finance support services to keep their establishments open and afloat through such turbulent times. One of the main reasons for doing so is to maintain liquidity and short-term cash flow.
Another reason has to do with keeping the business surviving, especially amidst government restrictions, policy regulations, and health concerns among the public.
Explore Your Financial Options Today
The lending market is ever-changing, especially now that the market landscape is driving new financing products and loan terms/rates for all businesses.
Our mortgage brokers at Plan A Mortgage will gladly take you through new and expanding loan options from suitable lenders. That way, we can make sure that you can find a loan that works best for you.
If you’re looking for more funding for your small and medium business, reach out to us today.
We’ll discuss your current financial position and borrowing power so we can help you prepare your business to take off as soon as possible.
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