New report showed that business owners continued to invest in business growth even as they grappled with the big three business costs: insurance, energy expenses, and taxes and government charges – findings that are consistent with MoneyTech’s data.
As Christmas looms, a significant 76% of business owners identified business costs as a hindrance to profit growth, with 61% of respondents identifying these costs as a barrier to business expansion, according to the December 2023 Business NSW’s NSW Business Conditions Report.
“As a non-bank business lender, with a range of finance facilities for SMEs and a dedicated small business team, Moneytech is very familiar with the expansion and profit barriers faced by business outlined in the Business NSW report,” said Reece Ketu (pictured above), Moneytech’s head of small business.
“Business costs are impacting the survival and growth of businesses in NSW, however as the report identifies, the vast majority of NSW Businesses are investing in initiatives to improve productivity.”
While business costs weigh heavily on the minds of NSW business owners, the report revealed a positive trend: the majority of businesses are investing in initiatives to enhance productivity, with the top three initiatives identified in the report including staff training, machinery and equipment, and IT programs.
“Moneytech’s data mirrors that presented in the report, with managing business costs and investing to grow being the top reasons business seek finance,” Ketu said. “Finance facilities can be used to free up cash flow, provide working capital for investment, or purchase equipment or machinery to improve productivity.”
Moneytech’s equipment finance product, for instance, has experienced a remarkable 99% growth since its relaunch in February, supporting businesses in acquiring or upgrading equipment. Other financial solutions, including debtor finance to enhance cash flow and line of credit finance for working capital, have also witnessed substantial growth.
“Delivering financial solutions to assist business is at the core of Moneytech’s approach and the data reveals a strong association between the issues business face and the solutions a tailored finance facility can help provide,” Ketu said.
Ketu stressed that amid concerns about business costs, inflation, and interest rates, Moneytech’s finance facilities are assessed based on the strength of the business rather than personal assets. This ensures that personal assets remain safeguarded.
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