Non-bank SME lender Prospa has again highlighted the opportunity that the holiday season brings for brokers to assist their SME clients, as well as for setting goals for their own business.
New research conducted by Prospa has found that 57 per cent of small businesses stated they would benefit from extra funding to prepare their business for the end of the year, with primary drivers of finance needs including cash flow operations, technology upgrades and for the purchase of stock.
Further, while many owners stated they were enthusiastic about booming business during the holidays, 37 per cent of respondents stated they felt “worried and/or stressed” about the pressure put on their business during this time.
The research included a survey of 506 small-business owners across Australia, conducted between 28 October and 14 November 2019.
Alex Brgudac, head of partnerships at Prospa, said the holiday season is often just too intense for small businesses to grant owners the same break that bigger businesses can afford. However, he outlined that brokers could help relieve some of the financial stresses faced by SMEs.
“The survey findings indicate that most small-business owners think their business could benefit from funding during the holiday season, but many aren’t aware of the different solutions out there.
“I encourage brokers to reach out to their small-business clients and start that conversation. Whether it’s a line of credit to offer peace of mind during a slow January or a loan to cover a big order or new fit-out, a cash injection this time of year can make a big impact on small business.”
The results are not dissimilar from a previous poll conducted by Prospa in September, which found that two-thirds of small-business owners feel stressed during the holiday period due to cash flow issues.
Hannah Dowling is a journalist for The Adviser and Mortgage Business.
Prior to joining Momentum Media, Hannah worked as a content producer for a podcast catering to property investors. She also spent six years working in the real estate sector at a local agency.
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