Well over half of the SMEs within Australia have identified access to cash flow as the main contributing factor which would help their business recover from the COVID crunch, according to new research from OnDeck Australia.
Larger SMEs that employ between six and 49 staff members are even more likely to need a ready supply of cash flow, with seven out of ten agreeing access to funding is crucial for the business to once again find its stride.
This figure compares to 60% of business with fewer than six employees, and 49% of sole traders.
“These findings demonstrate that Australia’s small business community may win the battle for survival against COVID-19 but, without the cashflow to rebuild, many could lose the peace,” said Robbie Fidler, national broker channel manager at OnDeck Australia.
Fidler emphasised that, thus far, SME owners around the country have been getting by through trimming their business expenses to a bare minimum.
“But that is a survival strategy – not a recovery plan,” he said.
“As we head towards spring and the upcoming festive season, businesses need to be able to pick up steam for what is traditionally the peak trading period of the year, and this demands access to cashflow.
“To this end, we applaud the Government for extending JobKeeper payments until the end of March and the extension of the Coronavirus SME Guarantee Scheme until June, which allows SMEs access to $1 million in secured funding that will enable them to adapt and innovate during the coronavirus crisis.”
OnDeck is one of the 44 approved lenders participating in the scheme.
The lender’s findings also highlighted the role brokers have to play in supporting SMEs’ recovery through the pandemic.
“Our research has highlighted that SME owners want to be able to connect with another human being during the commercial finance process. The human touch is one of the key benefits that brokers can offer their clients in what may be an unfamiliar commercial lending experience,” Fidler finished.
