Small to medium sized enterprises (SMEs) need unique support when trying to gain finance. In recent months it has become increasingly difficult for some business owners because of government stimulus, debt or poor periods of revenue. In March it was reported that 1 in 4 SMEs who apply for loans are unsuccessful - this number unfortunately came at a time where many SME loans were for the purpose of easing working capital constraints.
How a Broker can Help
Brokers can be absolutely instrumental in helping SMEs gain finance in a climate where many are in need of expert assistance to avoid getting their loan applications denied. Firstly, ensuring SME clients have the capacity to meet existing loan and financial obligations will secure better growth for the long-term life of their business. In this sense a broker is able to look at the whole picture of a business, not just their immediate and short term financial goals, which can sometimes be front-of-mind for borrowers and lead to hasty financial decisions.
Why a Brokers should get involved in SME finance
There are so many different finance options now for small businesses, and brokers are in a great position to help match up SMEs with a perfect loan product. It is estimated that 1 in 4 small business owners will seek finance in 2021. This represents a great opportunity for brokers to generate business and help Australia's businesses that may be struggling in the wake of financial supplement payments that have ended. Surveys shows that more than 60% of Australia's small businesses were adversely affected by Covid-19. So brokers play a key role in helping businesses recover, as when they can't access finance, or their finance is delayed, businesses remain in a state of limbo and can even regress.
The AAA Mortgages team are highly experienced in the SME lending space - see our SME page to find out how we can help.