What the Royal Commission findings mean for Small Business.
Small business funding is getting a shake-up and it is good news for both SMEs and alternative lenders. The Royal Commission into Misconducts into Banking, Superannuation, and the Financial Services Industry has taken a two-part approach to improve the lending playing field for small business, by:
- acknowledging that the Australian Banking Association (ABA) Code of Banking Practice is the chief protection for small business borrowers; and
- recommending that the ABA Code of Banking Practice be strengthened to close ‘get out of jail’ loopholes that banks can currently use
This paves the way for small business funding to extend well beyond traditional banks to encompass alternative lenders like Capify, who have a host of loan options tailored specifically for SME needs.
More small business funding options
Plot twist: there are loans and lending options beyond just banks. Small business funding is available from a range of different lenders. This offers SMEs access to greater choice in loan terms, interest rates, finance duration and structure plus much more.
In light of the Royal Commission, there is a strong focus on keeping SME funding flowing. Business and political sector support is being actively called for to promote viable alternative small business funding.
Greater protection for SMEs
Small business funding naturally takes place in a much wider context. Currently that broader market context encompasses a slowing property market and tighter lending conditions. SME owners are commonly required by banks to put up their home as security for business loans. Here is where alternative lenders can be the game-changer in small business funding. By way of example, a Capify small business loan is unsecured meaning that a SME owner borrower does not have to pledge any collateral against the loan. Short term loans of six to 12 months are available plus flexible daily repayments help SME owners to maintain steady day-to-day business finances.
If you need small business funding, be sure to speak to leading alternative lender Capify.
Or call 1300 760 930 to speak with one of our friendly Lending Consultants now.