Flexibility emerges as a key priority for small business loans
What’s most important to you when selecting a lender to provide finance for your small business right now? Well, Australian small business owners have put ‘flexibility’ when it comes to loan repayments right up there on their priority list.
And that should come as no surprise given the disruptive nature of the economy that most businesses have had to endure over the past two years.
In fact, research conducted by RFi Group, commissioned by small business lender Prospa, found one-third of SMEs (33%) would more likely choose a lender with more flexible repayment options when applying for funds over the next 12 months.
So what are flexible repayments?
Well, when respondents were given the opportunity to define flexible repayments, one key theme was prevalent: flexible timeframes.
Many SMEs associated flexible loan repayments with the ability to repay loans earlier, extend repayment periods, or make no repayments for a given time (ie. up to 8 weeks).
“Small businesses were required to adapt, shift, or pivot over the past two years,” explains Prospa national sales manager Roberto Sanz.
“Therefore, it is understandable that business owners are looking for flexibility to work through changing market conditions and make necessary adjustments to keep their business moving.”
Prospa’s research is in line with that of SME non-bank lender ScotPac, which found that cash flow was a top-three concern for business owners right now, with 81.5% of SMEs admitting it had them worried.
Want to explore your flexible finance options in 2022?
The SME lending space is an evolving one, with a surge of new lenders and products recently hitting the market.
And one key emerging trend is, yep, you guessed it: flexibility.
So if you’re an SME owner who might be in need of flexible funding, get in touch today. We’d love to help your business explore its options.
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