Login
ISCOVER
The SME lender has highlighted the crucial role that brokers can play in helping small businesses diversify.
Research conducted by small-business lender OnDeck Australia has revealed the pivotal role that brokers can play in helping Australia’s small businesses diversify their enterprise through access to fast and efficient funding.
According to OnDeck’s survey, over seven out of 10 (71 per cent) small-business owners said they face some level of risk arising from a small customer base.
Furthermore, over one in 10 (10.2 per cent) business owners believe this risk is ‘extreme’ owing to dependence on a small number of customers.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Only 12 per cent of small-business owners see no risk at all associated with the scale of their customer base.
OnDeck Australia chief executive Cameron Poolman commented on the research results: “Our survey results highlight how common it is for small businesses across Australia to rely on a small number of customers.
“This phenomenon is referred to in the industry as ‘concentration risk’ and brings inherent challenges, particularly if, for whatever reason, an enterprise loses one or more key customers.
“Brokers may find that not all small-business owners want to scale their enterprise. However, by growing a customer base, a business can significantly reduce the risk of instability that tends to go hand in hand with a restricted customer base.”
According to OnDeck, for many small- to medium-sized enterprises (SMEs) to grow a customer base, they require easy access to funding.
Mr Poolman added: “A small business is a valuable investment, and like all investments, an enterprise can benefit greatly from diversification.
“OnDeck’s Lightning Loans give brokers and their small-business clients a clear upfront picture on how much a loan will cost.
“This allows brokers and small-business owners to have conversations around the return on investment of exploring new products, new markets, or just increasing marketing efforts to attract new customers.”
The unsecured Lightning Loans offering, available for up to $175,000, can provide SMEs with the opportunity to market their business more broadly, explore new markets, or grow their customer base, according to OnDeck.
“As we head into a new year that may bring difficult trading conditions for some small businesses, it has never been more important for brokers to help their small-business clients explore new ways to expand an enterprise’s customer base,” Mr Poolman concluded.
JOIN THE DISCUSSION