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Research has revealed whether small-business owners in Australia would reinvest additional funds or use them to take a break.
Almost one in five (18.3 per cent) small-business owners would use additional funding to upgrade equipment or facilities to reduce downtime, according to a survey by online small business lender OnDeck Australia.
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The same research found that over two in five (41.7 per cent) would use the funds to take a break, feeling confident they had enough cash in reserve to cover unforeseen costs during their time away.
Another 16.5 per cent would invest in the venture’s technology or automation to maintain operations.
Around one in seven (14.9 per cent) small-business owners would use funding to pay for additional or temporary staff to support operations, while 8 per cent would put additional funds to work hiring or training an interim manager to step into the owner’s role.
OnDeck surveyed 500 businesses nationally as part of the research.
OnDeck Australia CEO Cameron Poolman said the survey highlighted how additional funding can be the key to unlocking downtime and that brokers have an important role to play.
“Whether it’s hiring extra help, restocking inventory, or simply stabilising cash flow, the right funding solution can empower small business owners to step away, confident their business is in good hands,” Poolman said
“Brokers play a vital role in supporting their small business clients by highlighting the availability of specialist small business lenders who truly understand their unique funding needs – especially the need for fast, hassle-free funding solutions.”
In comments to The Adviser, OnDeck Australia head of partnerships Nick Reily commented: “With only weeks remaining until Christmas, brokers can help small businesses take advantage of a narrow window of opportunity to access fast, effective finance – it can be the make-or-break factor that allows small enterprises to navigate the busy weeks ahead.
“It may be the silly season but smart use of commercial lending can be the factor that sees brokers support their small business customers to manage the holiday period and set out on the path for success in the New Year.
“It’s not just about brokers supporting their existing small business clients. It’s also about growing a broker’s own business. Many brokers may be new to commercial lending, and the festive season can offer opportunities for brokers to engage with the small businesses in their community as a way of diversifying their business and exploring additional revenue streams.
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