INABILITY AMONGST AUSSIE SMES TO ACCESS CREDIT ‘DEEPENS’ ECONOMIC DOWNTURNS, SLOWS RECOVERY

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