Research by leading small business lender OnDeck Australia confirms that when it comes to raising capital, Australian businesses do not face a level playing field.
OnDeck’s survey of 500 small businesses nationally found just one in four (25.4%) say they have no difficulty accessing capital.
The majority (74.6%) of small businesses face varying levels of difficulty accessing capital.
- One in four (25%) small businesses in Australia report having no issues accessing capital.
- The vast majority – three out of four small businesses – face hurdles when it comes to raising capital.
- Among small businesses facing cashflow challenges, 65% say fast loan approvals would support improved cashflow.
Mr Cameron Poolman, CEO of OnDeck Australia, said, “Capital is the lifeblood of an enterprise, and an inability to access capital on commercial terms can have a long-ranging impact on small businesses.
“We know from previous OnDeck research that when small businesses find it hard to access funding through traditional channels, many will go cap in hand to friends and family.
“This brings a raft of risks. A small business owner may lose a valuable personal relationship. Worst case scenario, disagreements over money can escalate to the point where the parties become embroiled in costly legal action.”
Fast loan approvals support improved cashflow
An injection of funds can help businesses meet growth targets while also meeting cashflow challenges.
One in three small businesses surveyed by OnDeck report facing cashflow challenges, with 65% saying fast loan approvals would support improved cashflow.