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Apr 2016

Small Businesses Have Positive Outlook on Investing

April 1, 2016
Capify Australia

Confidence is important in any business venture, and when it comes to investing, being able to trust a decision or someone could help a lot in achieving success. This confidence is what drives small businesses to take their enterprise to the next level.



Confidence and Sales are Up

Small businesses are growing more confident and they continue to  improve conditions in their sector. In spite of this, they still remain more pessimistic than their larger business counterparts.

That is the finding on the Australian Chamber of Commerce and Industry’s latest small business survey. The poll shows most indicators reaching, even exceeding, five-year averages in the December quarter 2015.

Among the most notable indicators are: sales and profits are increasing, and confidence is improving. This increased confidence in the market is encouraging business owners to invest in plant and equipment, stocks, and workforce– all in an effort to grow their organisation.

The Chamber’s CEO Kate Carnell believes that in order for small businesses to catch up with big businesses, government red tape should be reduced and the tax system be simplified.


Boosting Funds to Boost Confidence

For small and medium enterprises, capital will figure prominently in their investment decision. Improving cash flow management is still a top priority for SMEs, and that includes having extra funds to spend on investments.

Here at Capify, part of our mission is to help  with funding. We are keen on helping small and medium enterprises achieve their business goals through quick, convenient loans.

Alternative lending platforms like Capify are already generating strong interest in from business owners who do not really meet all the requirements of a conventional loan.

Most business owners think they won’t qualify for a loan, especially if they don’t put up a house or a major asset as collateral. But at Capify, we actually work to make business funding simple and convenient.

Capify can lend any amount from A$5,000 to A$400,000 in unsecured finance to SMEs. We made our repayment terms flexible, which will depend on your business’s monthly turnover. It can last anywhere from 3 months to 15 months. We set these terms to give you a loan that will actually help you boost your operations, not just another thing to add to your ledger’s liability column.

Capify is changing the business lending sector, because we assess clients’ credits differently from the traditional bank model. We can approve more often when it comes to small business loans.


A Ripple Effect

Another survey shows that many SME owners are looking for opportunities to grow and become major players in the Australian economy.

Many small businesses want to invest in economic multipliers– those that will help their operations grow now and in the long run. This means that the small business loans, Capify and other lenders provide, have a ripple effect on sales and jobs in the broader market.

MYOB Chief Technology Officer Simon Raik-Allen said technology is the priority for these businesses when it comes to investing in innovation.

“SMEs see that technology can help them do business more efficiently and service their customers better,” Raik-Allen was quoted as saying.

Now that  knowledge is seen as the key to Australia’s future prosperity, it’s great seeing SMEs  investing in knowledge acquisition and employee training.

Businesses, in general, are advised to to grow their collective skills base to stay relevant and competitive. This is crucial  since the MYOB Business Monitor (a bi-annual national survey of more than 1,000 SME business owners) shows that SMEs are uncertain when it comes to confidence in the economy for the next 12 months.



Overcoming the Hurdles

The MYOB Business Monitor also asked the business owners about the things they considered to be barriers to innovation.

  • Development or introduction costs– 28%
  • Government regulations– 23%
  • Lack of funding for R&D– 14%
  • Lack of marketing expertise– 14%
  • Limited access to investment– 12%

Business owners may soon get a helping hand from the government, as Prime Minister Malcolm Turnbull laid out a plan to encourage startup growth, entrepreneurship, and business innovation. Part of his plan includes enticing some of the more than 20,000 Australians working in Silicon Valley in California to work again in the country.


Sources of Funding

With access to investment seen as a challenge for some SMEs, another interesting point from the MYOB survey is the funding for these organisations, or lack thereof.

Fifty-five percent (55%) of the respondents said they didn’t source any capital or finance in the last 12 months, which suggests SMEs tend to rely on themselves when it comes to capital cash. Of the 40% that did source capital funds, 18% worked with Australia’s big  banks.

Credit card companies (7%) and family and friends (7%)  were the next largest source of funding, followed by investors (5%) and home equity (3%).

From all these numbers and statistics, it is clear that to move forward in innovation or investments, SMEs need financial backing, be it from traditional or alternative sources. At Capify, we aim to do our part in helping entrepreneurs by providing a convenient, alternative lending platform.

If your business needs to invest to grow but doesn’t have enough funds, Capify can assist. Apply today and we’ll get started to giving you the booster shot your business needs to grow.


Or call 1300 760 930 to speak with one of our friendly Lending Consultants now.

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