Accessing SME lending options
According to the productivity commission, brokers have an important role to play for businesses, as a surge of new SMB lenders and products is rapidly becoming available.
Changes to lending markets over the past decade mean there’s now a wide range of business finance options that don’t require property as security, reported by the Productivity Commission.
However, a lack of awareness of these finance options is one of the biggest hurdles preventing SMB owners from accessing them.
Why are more SMB finance options emerging?
Changes to prudential rules have made lending to SMBs less attractive for the major banks, but at the same time, created opportunities for new and established non-bank lenders.
This has resulted in a broader range of lending options beyond traditional property-secured loans for SMBs, especially with the emergence of fintechs and more accessible borrower data.
“Combining new data sources with innovative analytical tools (such as artificial intelligence and machine learning) has given many lenders the information and confidence to lend without the security of property,” adds the report.
However, while most SMBs are aware of banks as a source of finance, awareness of the newer options is more limited.
How QPF Finance can help your business
As brokers, we’re constantly upskilling and learning to make sure we stay abreast of the finance options and players in the SME finance space.
It’s for this reason that the Productivity Commission highlights the key role brokers can play for busy SME owners.
So if you’re in need of finance for your SME business, but don’t know where to start, get in touch today.
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