Australia’s reopening is leading to a surge of credit demand, with more than one in three small businesses requiring access to an average of $46,000 to take hold of an opportunity as the nation bounces back to recover in time for holiday season.
New research conducted by RFi Group over October 2021, commissioned by Prospa, offers insight into the funding needs of SMEs over the next 6 to 12 months as business and economic confidence rises with the lifting of restrictions.
The research found 37% of SMEs require access to funds, with an increase to 56% for businesses that have traded between two to five years. The amount required also increases from an average of $46,000 to $58,000 for SMEs that have traded for less than 5 years.
For majority of businesses the top reasons additional funds are required is to purchase tools, equipment, or machinery, restock on inventory, or invest in digital software. The survey reinforces the importance of capital, with 87% respondents noting opportunities may be missed without access to funds.
Roberto Sanz, National Sales Manager at Prospa, said:
“Cities are bustling as restrictions relax and small businesses want to seize the opportunity of economic uplift and end of year trade. However, the journey to recovery for small businesses comes with the need for credit to restock and retool.
“Access to funds should be fast, and not met by delays, to keep your business moving. I encourage small businesses to explore alternative lenders like Prospa that can offer access to funds in 24 hours to ensure this time tomorrow your business can get organised to recover and thrive.”
To learn more about Prospa’s business funding products and solutions please visit www.prospa.com.au
For further information contact:
Corporate Communications Manager
e: [email protected]
Prospa has delivered more than $2 billion in funding to almost 12,000 small business customers across Australia and New Zealand and works with more than 10,000 distribution partners. Importantly, as a result of Prospa’s partner and customer service experience. More than 50 per cent of its business comes from repeat customers over the past quarter and has a NPS at an impressive 80.
Notes to Editor
RFi Group research, commissioned by Prospa, surveyed 396 Australian small medium businesses in October 2021.