Australian small businesses have expressed the importance of flexible loan repayments, with one third of businesses highlighting that it would be a primary driver when selecting a lender.
Research conducted by RFi Group over September 2021, commissioned by Prospa, found a key challenge for one out of every two small businesses (53%) is the uncertainty of future profits when managing cashflow or constructing a business plan.
The research highlights that the solution a portion of small businesses are seeking is flexible loan repayments (18%) to better manage cashflow during possible disruptions. In fact, one third of the SMEs (33%) highlighted they would more likely choose an alternative lender with more flexible repayment options when applying for funds over the next 12 months. The research highlights the desire to be prepared for any possible disruptions, given the events of the past two years, bringing flexibility to the forefront of small business owners in Australia.
Respondents were given the opportunity to define flexible repayments, and 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.
Roberto Sanz, National Sales Manager, Prospa, said:
“Small businesses were required to adapt, shift, or pivot over the past two years. 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.
“We have taken action by offering ‘no repayments of up to eight weeks’ for an extended period to provide small businesses with extra time, and we will continue to explore new ways to improve our funding products to support small businesses across Australia.
“With our customer-centric ethos, we continue to keep our finger on the pulse to ensure we are aware of what small businesses require to offer funding solutions and customer service that stands out from the rest.”
Prospa has relaunched ‘no repayments for up to eight weeks’* offer for new and existing Australian small business customers and is available until 28 February 2022.
To learn more about Prospa’s business funding products and solutions please visit www.prospa.com.au
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Notes to editor
RFi Group research, commissioned by Prospa, surveyed 508 Australian small businesses in September 2021.