Almost one-in-two SMEs have applied for new funding in the last six months, a new report has found, and of those SMEs only half were successful in obtaining the full amount they were seeking.
If you haven’t already figured it out over the past 18 months, small and medium-sized business owners are a pretty resilient bunch.
You know that classic 90’s Chumbawamba song: “I get knocked down, but I get up again…” Yeah, life as an SME owner can be a little like that at times.
In the latest round of knock-downs, a survey of 1750 SMEs nationwide, conducted by East & Partners and Judo Bank, found that 48.1% of SMEs had applied for new funding in the last six months.
And of those SMEs, only 50.4% were successful in accessing the full amount, 22% were partially successful, and 27.7% were unsuccessful.
What else did the SME funding report find?
It seems the bigger you are, the better your chances of securing funding.
Twice as many businesses in the $1 million to $10 million turnover range were unsuccessful in their application for funding (36.5%), compared with just 15.9% in the $10 million to $50 million turnover category.
And difficulty accessing new funding is especially pronounced if you work in the retail space, with 44.4% of retailers unable to secure new funding compared to a mere 8.6% of builders.
SMEs are primarily borrowing for working capital (91.1%), investment in new plant and equipment (48.1%), and COVID-19 related provisions including bridging finance (45.6%).
One-in-four SMEs also want new funding to hire more staff (25.9%).
How we can help your business
Times are tough for many businesses, there’s no doubt about that.
So if you’re an SME owner in need of funding, get in touch today and we can take the lead on helping you source finance.
The sooner we can discuss your options with you, the better placed your business can be to get through 2021 and thrive beyond.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.