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The current economic environment presents challenges for residential and commercial borrowers alike. But recent research conducted by Prospa and YouGov in April 2022 has identified that small-business owners are seeking funding to get through.
FACED WITH the pandemic’s challenges, as well as ongoing supply chain issues, labour shortages and increased operating costs, small businesses have made smart changes to take advantage of opportunities and ensure they are prepared for challenges.
This same research revealed that seven in 10 business owners had either made or were in the process of making changes to their businesses, and this ability to adapt is testament to small-business owners’ determination. More than 40 per cent expected their revenue to increase in the coming year, and they were ready to invest in growth – 28 per cent intended to seek funding.
As consumer confidence continues to decline, and uncertainty persists around interest rates, staffing, supply chain interruption and operating costs, assisting small-business owners to navigate challenges and achieve growth offers opportunities for advisers.
A decade of helping SMBs achieve growth
Prospa recently celebrated a decade of helping small businesses succeed and grow. Our first customer, a hairdresser who needed funding to add an extra chair to her salon and knew that would boost her revenue considerably, is still an example of our mission – supporting small-business owners with the funding solutions that can help them thrive.
We know that our ability to provide access to fast, flexible funding is a key driver of this growth, and most businesses could unlock opportunities if they had access to credit.
Case in point: How one broker got funding in 24 hours
Tim Egan, a Queensland-based Mortgage Choice broker, was presented with an urgent problem. Local small business Allure Concrete Solutions needed help funding a piece of specialised equipment – fast.
The new machine would cost $30,000, and if it could be funded in a day, Allure’s owner would avoid $25,000-$30,000 in penalties for missed contract deadlines.
The key challenge for Mr Egan: the owner had only operated Allure as a small business for four months, after seven years as a sole trader, and didn’t have much financial information for the company.
According to Mr Egan, he experienced that most banks wouldn’t even consider his scenario. He approached Prospa to secure a loan with a simple, fast application process.
“We provided a full year’s financials to show continuity of ownership as the sole director and owner,” says Mr Egan. “We collected bank statements to show incoming transactions and had the money in his account within 24 hours.”
Have a tricky scenario? Let us help you get your client back to work, fast, with a fixed-cost loan.
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