The growth of SMEs is being significantly restricted by their inability access credit readily, according to the results of a survey commissioned by fintech lender GetCapital.
The Businessloans.com.au Small Business Credit survey was completed by 611 SMEs, defined as businesses with between 5 and 250 FTE, with an average minimum revenue between $50,001 and $250,000. It revealed that more than 60% of those who applied for credit last year ‘did not receive what they were looking for’.
“Credit is the key driver of growth for a small business and so a lack of credit means they simply can’t grow,” Jamie Osborn, CEO of GetCapital told Dynamic Business. “According to the survey, 33% of small businesses said they delayed expansion plans because of insufficient access to credit and a further 28% said they couldn’t fulfill orders because of a lack of credit. There is a direct relationship between access to credit and small business growth.”
Osborn said the survey highlighted the significant time spent by SMEs in the search for credit – three quarters spent more than 6 hours in the process with 15% spending more than 20 hours. He also said it demonstrated a concerning lack of knowledge, amongst SMEs, about where to look or what was involved, which meant false assumptions about credit availability and eligibility requirements. Read more
James Harkness – Dynamic Business – 4 Sep 2017