Recent reports have shown that small business owners or SMEs are now seeking financial advice and getting business loans outside of banks. Scottish Pacific conducted a survey and the results are quite surprising, SMEs are now more comfortable consulting and getting loans from non-bank lenders. According to Scottish Pacific’s report that was based on interviews with 1,253 SMEs from around Australia in January of this year. The results showed that 38.6 per cent had no trusted business adviser while those who nominated trusted business advisers showed that 9.7 per cent chose friends, 26.6 per cent chose trading partners and 9.0 per cent chose accountants. Sadly, only 4.2 per cent of the interviewees nominated their bank manager. This may come as a surprise since banks have always been the first institution that comes to mind when someone needs financial advice and loans. One would think that any business owner would approach their bank manager first.

According to Scottish Pacific chief executive Peter Langham “The fact they were more likely to trust a friend to provide advice about their business than their well-qualified banker or accountant shows there is a real opportunity for finance brokers, accountants and lawyers to step up and fill this gap for SMEs, to make the process easier for them.”  This new research has opened new doors for non bank lenders and has shed new light on how small business owners actually think and operate. However, the research also revealed that there is a small decline in the growth of small businesses and this can be attributed to the fluctuation in the Australian economy. The increase in interest rates and the difficulty in getting business loans could also be the reason why business owners seek financial assistance outside of banks.

Business loans requested by small business owners

It is alarming though that 34.9 per cent of small business owners do not have any long term plans but the positive side of that is that 58.9 percent of these business owners are optimistic about their company’s growth and have full trust in the capacity to find a lender that will help them fund future expansions. Small businesses have now found an ally in non bank lenders not only in getting financial advice but also in securing fast and easy business loans. Non bank lenders like businessloanss.com.au are now making business loans applications a cinch for small business owners. Not only do they make the process easier and faster but they also ensure that sound financial advice is always at hand.

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