While SMEs account for 96 per cent of Australian businesses, small-business owners are severely underserviced when it comes to securing loans from traditional banks. A recent Business Banking Index found that 39 per cent of small businesses is actively considering a move to non-bank lenders due to the long approval times and general exasperation with major banks. With alternative lenders, business owners can opt for a slightly higher cost of finance in order to not risk losing their family home or being cut out of the process altogether.
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- While SMEs account for 96 per cent of Australian businesses, small-business owners are severely under-serviced when it comes to securing loans from traditional banks.
“As housing prices continue to rise disproportionately to income, more small-business owners, especially millennials, do not have the option to offer their home as security to the bank.”