{"id":203805,"date":"2021-10-16T21:51:25","date_gmt":"2021-10-16T21:51:25","guid":{"rendered":"http:\/\/yorunoteiou.com\/?p=203805"},"modified":"2021-10-16T21:51:25","modified_gmt":"2021-10-16T21:51:25","slug":"small-business-urged-to-let-go-of-banks","status":"publish","type":"post","link":"http:\/\/yorunoteiou.com\/?p=203805","title":{"rendered":"Small business urged to let go of banks"},"content":{"rendered":"<p><p>Many small businesses are still depending on banks to get a loan, unaware of newer lenders which offer more ways to help them through difficult times.<\/p>\n<\/p>\n<p>A Productivity Commission report on lending to small business found most tried for a bank loan to improve cash flow.<\/p>\n<\/p>\n<p>There are more than two million small businesses in Australia and the government says their survival is important to the economy.<\/p>\n<\/p>\n<p>Small to medium businesses employ 7.4 million people.<\/p>\n<\/p>\n<p>However if these <a href=\"https:\/\/www.dictionary.com\/browse\/companies\">companies<\/a> cannot get loans, they sometimes go bust.<\/p>\n<\/p>\n<p>Small businesses are likely to have a harder time borrowing from banks in the future.<\/p>\n<\/p>\n<p>Lending to business compared with other customer types has dropped from 55 per cent in 1990 to 32 per cent in 2020 due to industry change.<\/p>\n<\/p>\n<p>Yet legal and technological change has helped a new breed of lenders offer more diverse products.<\/p>\n<\/p>\n<p>These include loans secured by assets other than property, such as machinery and vehicles, as well as unsecured loans.<\/p>\n<\/p>\n<p>Business assets could provide security for a loan of about $5000.<\/p>\n<\/p>\n<p>Intangible assets on a balance sheet can be another means of security.<\/p>\n<\/p>\n<p>The most common type is invoice or accounts receivable finance which uses outstanding invoices as collateral.<\/p>\n<\/p>\n<p>The borrower receives credit based on the value of future invoices, which allows the business to receive payment sooner than waiting for  <a href=\"https:\/\/tranhmaihuong.com\/tranh-go-cuu-hac-du-xuan-duc-dep\/\">https:\/\/tranhmaihuong.com\/tranh-go-cuu-hac-du-xuan-duc-dep\/<\/a> the customer to pay.<\/p>\n<\/p>\n<p>The report authors said these lesser-known loans could benefit traders significantly.<\/p>\n<p>Maintaining cash flow, for example, could help a business avoid late fees or seize a sales opportunity.<\/p>\n<\/p>\n<p>Lenders offering these types of loans include Earlypay, Moula and Prospa.<\/p>\n<\/p>\n<p>To help more small businesses take advantage of these loans, the government is encouraging lenders and prospective customers to share information to build trust.<\/p>\n<\/p>\n<p>However, newer lenders without reputations were having limited success in winning support for products such as online lending, the report said.<\/p>\n<\/p>\n<p>Having more data on smaller players&#8217; lending would help efforts to sustain this market, the report said.<\/p>\n<\/p>\n<p>Ensuring small businesses can access finance could stop more closing during the tough trading times of the pandemic.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many small businesses are still depending on banks to get a loan, unaware of newer len\u2026","protected":false},"author":31266,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[1],"tags":[3622],"_links":{"self":[{"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/203805"}],"collection":[{"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/users\/31266"}],"replies":[{"embeddable":true,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=203805"}],"version-history":[{"count":1,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/203805\/revisions"}],"predecessor-version":[{"id":203812,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=\/wp\/v2\/posts\/203805\/revisions\/203812"}],"wp:attachment":[{"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=203805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=203805"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/yorunoteiou.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=203805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}