What factors do you consider most significant when looking for a lender to help you finance your small business right now? Small business owners in Australia have put ‘flexibility‘ when it comes to loan repayments at the top of their priority list.

And given the volatile nature of the economy that most firms have had to deal with over the last two years, this should come as no surprise.

In fact, according to a study commissioned by small company lender Prospa, one-third of SMEs (33 percent) would prefer to borrow money from a lender that offers more flexible repayment alternatives in the next 12 months.

What are flexible repayments, exactly?

One major topic emerged when respondents were given the ability to define flexible repayments: flexible periods.

Flexible loan repayments are associated by many SMEs with the possibility to return loans earlier, prolong repayment durations, or make no obligations for a period of time (ie. up to 8 weeks).

“Over the last two years, small firms have been forced to adapt, shift, or pivot,” says Prospa national sales manager Roberto Sanz.

“As a result, it’s logical that business owners seek flexibility to deal with changing market conditions and make required adjustments to keep their operations running.”

Prospa’s findings are consistent with those of SME non-bank lender ScotPac, which revealed that cash flow is a top-three issue for business owners right now, with 81.5 percent of SMEs expressing anxiety.

In 2022, do you want to look into your flexible financing options?

The SME loan industry is constantly changing, with a slew of new lenders and products entering the market recently.

And, you guessed it, flexibility is a crucial growing trend.

So, if you’re a SME owner in need of flexible capital, get in touch with us right away. We’d be delighted to assist your company in evaluating its choices.