¾ SMEs struggle to raise capital: OnDeck

The survey of 500 business across the country found that 25.4 per cent (around one in four) small businesses have no difficulty accessing capital.

For those facing challenges, OnDeck has highlighted the opportunities for brokers to support small-business clients by providing quick and efficient funding.

OnDeck’s research found that of the 74 per cent of businesses, 65 per cent said fast loan approvals would support improved cash flow.

Chief executive of OnDeck, Cameron Poolman, stated that capital is the “life blood of an enterprise” and lacking the ability to access capital on commercial terms can have “a long-ranging impact on small businesses”.

“We know from previous OnDeck research that when small businesses find it hard to access funding through traditional channels, many will go cap in hand to friends and family,” Mr Poolman said.

“This brings a raft of risks. A small-business owner may lose a valuable personal relationship. Worst-case scenario, disagreements over money can escalate to the point where the parties become embroiled in costly legal action.

“Brokers can play a valuable role in the growth journey of their small-business customers by helping them access additional funds.”

According to OnDeck, its unsecured Lightning Loans offering (up to $175,000) provides brokers with a “fast, efficient avenue” to help support small-business clients.

Mr Poolman stated that the offering allows a broker’s client to make an informed judgement on the likely return on the items being funded, such as purchasing stock, upgrading equipment, or managing cash flow.

“Brokers can support the growth aspirations of their small businesses customers by partnering with dedicated small-business lenders such as OnDeck,” concluded Mr Poolman.

“Our commitment to fast and efficient funding allows a broker to meet the funding needs of small businesses, cementing a long-term relationship and supporting valuable customer referrals.”

Broking industry calls out credit agencies

Credit scoring agencies and lenders have been called on by members of the broking community to change the way they assess the creditworthiness of SMEs.

The industry has flagged that those that require a large volume of transactions are being unfairly penalised under the current system.

[RELATED: SMEs unfairly ‘penalised’ by credit scoring system, brokers warn]