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SME Owners Call For Flexible Small Business Loans

What’s most important to you when selecting a lender to provide finance for your small business right now? Well, Australian small business owners have put ‘flexibility’ when it comes to loan repayments right up there on their priority list.

This should come as no surprise given the disruptive nature of the economy that most businesses have had to endure over the past two years.

In fact, research conducted by RFi Group, commissioned by small business lender Prospa, found one-third of SMEs (33%) would more likely choose a lender with more flexible repayment options when applying for funds over the next 12 months.

What are flexible repayments?

When respondents were given the opportunity to define flexible repayments, one key theme was prevalent: flexible timeframes.

Many SMEs associated flexible loan repayments with the ability to repay loans earlier, extend repayment periods, or make no repayments for a given time (ie. up to 8 weeks).

“Small businesses were required to adapt, shift, or pivot over the past two years,” explains Prospa National Sales Manager Roberto Sanz.

“Therefore, it is understandable that business owners are looking for flexibility to work through changing market conditions and make necessary adjustments to keep their business moving.”

Prospa’s research is in line with that of SME non-bank lender ScotPac, which found that cash flow was a top-three concern for business owners right now, with 81.5% of SMEs admitting it had them worried.

What flexible finance options are available in 2022?

The small business lending space is an evolving one, with a surge of new lenders and products recently hitting the market. A range of flexible options are on offer, such as loan terms up to five years, repayment frequencies to complement your cashflow and no penalties on early repayments.

“Just like your business, every lender and every loan product is unique. The trick is finding the finance option that carries the type of flexibility you need,” says David Crook, Managing Director at Nero Financial.

“Working with a Commercial Broker makes it easy; we know this space inside and out, and talk to lenders every single day. Our job is to get to know your operation, strategic objectives and financial situation, to find and negotiate a deal tailored to you and your business,” he says.

If you’re an SME owner who might be in need of flexible funding, get in touch with Nero Financial on 1300 025 949 today. We’d love to help your business explore its options.