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Discover end-of-year funding opportunities for your SME clients
Whether they’re ramping up or slowing down, the end of year can be a tricky time for small businesses. We typically see those in the retail and hospitality industries needing cash to purchase stock in bulk and hire extra staff in preparation for a spike in consumer spending, while businesses in the building & trade and professional service industries seek funds to cover cash flow gaps as they shut down over the holiday period.
Now is a great time for brokers to start a conversation with SME clients, discuss goals and current challenges and introduce the right funding options to facilitate success.
“Brokers need to understand customers’ cash flow cycles, and identify the pain points and common pitfalls that impact positive business outcomes, especially at the end of year where there is always a tipping point for SMEs,” says Roberto Sanz, national sales manager at Prospa.
Recent Prospa-commissioned research* revealed that a third of SMEs prioritise speed of access to funds, with 25 per cent favouring a simple application process. Prospa is leading the way with seamless financial management technology and business lending specialist support – offering 10-minute applications and funding possible in hours.
Brokers are crucial in the client-lender relationship
“Over the past 11 years, Prospa has pioneered a system that makes it easy for brokers to diversify into cash flow lending,” Mr Sanz explains.
The system ensures the lender does the heavy lifting for the client, but the broker ultimately holds the client relationship.
Mr Sanz says mortgage brokers have achieved the most difficult first step of any business – customer acquisition.
“They have delivered value and built trust with their self-employed or business owner customers by helping them acquire or refinance their homes. Next step is to ask them the question: how are you managing your business cash flow?” Mr Sanz says.
“If brokers are not asking this question, it’s a lost opportunity. There is one thing certain in our world, it’s that every business owner requires fast access to cash at some point during the year – especially as they navigate the lead-up to end of year and the holiday period.”
End-of-year demand
According to Mr Sanz, the demand for funding by small-business owners is definitely there.
“Over the last five years we’ve seen an average lift of 26 per cent in applications for business funding from July to September into October to December,” he said.
Prospa-commissioned research* showed more and more small-business owners are looking to their brokers to inform decisions on borrowing products, with 21 per cent of SMEs specifically seeking their advice.
“This current calendar year, mortgage brokers made up 54 per cent of our transacting partners,” Mr Sanz said. “And further trends indicate that business owners remain conservative, preferring to seek professional advice before making a decision.”
With the end-of-year period approaching, it’s crunch time for brokers intending to prepare themselves for the uplift. Reach out to one of our locally focused BDMs to discover how Prospa makes things easier for partners and their SME clients at this crucial end-of-year period.
*RFI Global Australian Small Business Council June 2023
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