Business loans help small businesses recover
The challenges of the past two years have had a huge impact on businesses, but it appears they are now recovering.
Recent statistics from analytics firm Equifax show that business loan applications are increasing, meaning more companies are optimistic and poised to grow and expand after all the uncertainty.
The Equifax Quarterly Business Credit Index highlights the changes that have occurred since the December 2020 quarter:
- Total business loan applications up 9.7%
- Asset finance applications down -3.5%
- Demand for business loans in the accommodation and hospitality sector saw a significant increase of 33% compared to the fourth quarter of 2020 and 11% compared to the same quarter of 2019
- Demand for business loans also rose by 18% in the retail sector.
It is interesting to note that demand for business loans has increased in the accommodation and hospitality sector, showing that even businesses that have been hardest hit by the pandemic are now regaining confidence and trying to rebuild and grow.
State support for your company
Some companies hit particularly hard by the pandemic needed a little extra financial help. One response to this has been the government’s introduction of support programs.
For example, a multi-billion dollar support package for NSW small and medium-sized businesses was announced in January this year. The Small Business Support Program is aimed at small and medium-sized businesses that have suffered from the Omicron outbreak. To access it, companies need to show they suffered a 40% loss in January and February 2022. Applications are currently possible via service.nsw.
If you are a sole proprietor or small business nationwide, COVID-19 related financial assistance is available depending on your location. You can find the latest government supports relevant to your state or territory online.
Would you like to boost your business with a loan?
Running a business can often require more funding than you currently have. There are ways to help your business get back on its feet during tougher times. For example, a business loan gives you access to money to help you start or grow your business and pays it back when you’re in a better financial position.