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Loyalty and tailored advice were preferred by SME clients when engaging with brokers and advisers, a report has found.
More than 70 per cent of Australian small- to medium-sized enterprises (SMEs) prefer to engage with brokers and advisers who offer actionable business suggestions and recommendations, according to the 10th-anniversary edition of ScotPac’s SME Growth Index Report.
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The report, which is Australia’s longest-running SME sentiment survey, highlighted key preferences and expectations of small and medium-sized enterprises (SMEs).
The Round 20 research was conducted by East & Partners, who interviewed 727 SME enterprises with annual revenues of $1–$20 million.
The findings revealed that one-third of SMEs seek introductions to potential suppliers and investors through their advisers. This underscored the value businesses place on networking and leveraging professional connections for growth.
Additionally, 53 per cent of SMEs expect brokers and advisers to provide specific advice tailored to their business needs, while 29 per cent prefer advice relevant to their industry.
Forty-four per cent of SMEs, including 52 per cent of those in a growth phase, anticipated that brokers and advisers will be proactive and fulfil their promises, while 22 per cent of SMEs wish brokers and advisers would present a wider array of lending options.
Despite these preferences, only one in five SMEs preferred a retainer-based advisory package when engaging with brokers or other professional advisers.
ScotPac CEO Jon Sutton said on the findings: “The last few years have been a roller-coaster ride for Australian SMEs with surging inflation, 13 interest rate rises, and a raft of new awards and workplace laws adding to their compliance burden.
“Against this turbulent economic backdrop, it is understandable that business owners want brokers and advisers to offer dependable advice to help them manage their cash flow, maximise their working capital and simplify their lives.”
Sutton emphasised that personalised service remains the most effective business development tool for brokers and advisers.
“The message from SMEs is pretty clear – brokers and advisers who stay informed and share their expertise about new lending options and industry-relevant news will earn customer loyalty,” he said.
For brokers aiming to enhance service for existing clients and attract new business, Sutton recommended registering for ScotPac’s Partner Portal.
“Our Partner Portal is the ultimate relationship manager for brokers,” Sutton said.
“It gives brokers an unmatched range of tools and resources at their fingertips so they can quickly find the perfect product to help their clients achieve their goals.”
[RELATED: What role do private lenders play in helping SMEs?]
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