May 16, 2019 by Sean Willett
According to research by SME lender OnDeck Australia, six out of ten small business operators say that they observed a negative impact on their business as a result of major political events, such as elections. Around 30% of them have noted a decline in revenue as a result.
“The possibility of a change in Federal government often sees both consumers and businesses put major purchases or projects on hold. This has a direct knock-on effect on the SME community,” OnDeck Australia CEO Cameron Poolman said in a statement.
Have a plan
The claim of being "completely prepared for the Federal election," is only held by a relatively small number at 17%. This is due to in part, the fact that voter sentiment is not always accurately captured by opinion polls and SMEs are confronted with uncertain future government policies.
“While an election will change the goal posts, the key for Australian small businesses will be to keep informed, make a plan, and think ahead to create a foundation for success,” Poolman said.
Access to cash flow was identified as being a key issue in enabling SMEs to make it through the election period and the disruption that it causes by 59% of small business operators. Unfortunatly for most SMEs, the answer from most mainstream lenders is, "thanks but no thanks," making a plan to address cashflow very difficult.
An attractive solution
Plenty of SME operators have been forced to dip into their savings or ask friends and relatives for assistance in securing funds for additional working capital. A situation that is uncomfortable for both parties alike.
Even of the SMEs who were successful in securing bank finance, the findings were that just under 30% had experiences of long delays as they were forced to jump through endless hoops which , inturn had impacted their business negatively due to time and opportunity lost. Many SMEs are finding it far easier to arrange their finance by utilising the services of Fiance Broker.
The fact that the process is far simpler, quicker and a far better chance of success, make utilising the services of a professional business finance broker a bit of a no brainer and what's more all the work is done for you and in many cases at no cost to the SME (depending on the type of finance required).
One in four of Mortgage Choice at Oatley home loan borrowers are in fact SME Operators. With our proven relationship with them and our enhanced understanding of the needs of SMEs (we are one ourselves), it puts us in a perfect position to be able to offer sound financial advice to SMEs. Advice that will assist them to plan to be able to withstand the disruptions that such events like the current Federal Election throw at them.
If you'd like more information or would like to arrange a fact finding appointment to see how we can help your SME, click on the "Contact Us" section below choose one of the following:
Call 0437 149 326.
e-mail: sean.willett@mortgagechoice.com.au
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