Securing finance to grow a successful business can be a challenge, but there are options, writes NAB's GM of commercial broker
Finding capital to run and grow their business is the thing small business owners spend the most time worrying about. In today’s dynamic business environment, small businesses must respond and adapt quickly to market changes, but they also need appropriate financing options to keep pace with their movements.
The small business sector presents a growth opportunity for brokers to diversify their revenue streams and ultimately help more of their customers.
There are over 2.1 million small businesses across Australia, and most employment growth is being generated by the expansion of the one to four employee business category.
Around 27,000 new micro businesses commence operation each year, delivering 90,000 new jobs, making SMEs a significant contributor to the Australian economy.
It’s not surprising, therefore, that the latest NAB data shows small businesses are primed for growth, with expectations for capital expenditure over the next few months at its highest level for many years.
Small business owners are also feeling positive, with business conditions remaining favourable, and business confidence well above average.
Capitalising on business opportunities
Small businesses are often seeking quick access to finance to deliver on an exciting contract or new inventory. However, it can be difficult to receive quick approval, particularly if they don’t have sufficient tangible security, such as real property.
The good news is that there’s an increasing array of financing solutions available in the Australian market to help brokers service their business clients.
For example, NAB QuickBiz gives small businesses access to a loan of up to $100,000 on an unsecured basis, at a competitive interest rate of 12.95% p.a.
Available through the broker channel, these loans can be used for a range of client scenarios, from providing the necessary finance to hire more people, to buying equipment, or to help resolve a financing shortfall.
The NAB QuickBiz product suite also includes overdraft facility of up to $50,000, which is tied to a business transaction account, giving small business customers the flexibility to manage their cash flow and unexpected payments.
Small business clients typically require access to capital quickly and are turning to brokers to provide solutions often within a short timeframe. As Australia’s leading business bank, NAB is continuing to invest in new products and smart technology to help brokers deliver good outcomes for their customers in a simple, streamlined and supportive way.
Chris Thomas is general manager, commercial broker at NAB.
