We love Australian Small Business and Family Enterprise Ombudsman Kate Carnell. At Apricity Finance, we believe that she speaks the truth and really understands the needs of small to medium businesses across the country.
A recent article in SmartCompany quotes Ms Carnell’s warning that SMEs won’t be able to sell their businesses unless access to finance improves. This is an ongoing issue in Australia. We recently wrote about how many Australian businesses come up against obstacles when trying to access to capital (Read our earlier article here).
The Australian Small Business and Family Enterprise Ombudsman has started a formal inquiry (Affordable Capital for SME Growth) into the barriers to commercial lending for small businesses. The inquiry will investigate initiatives to provide affordable capital to SMEs to start and grow their business. The findings will be released in July 2018.
A recent survey of businesses for finder.com.au found that one in five Australian businesses had been refused a loan in the past two years, with Gen Y business owners finding it even more challenging.
According to Kate Carnell, the fact that many young business owners don’t own property makes it very difficult to secure finance in Australia at present. This means that at the other end of the spectrum, business owners who are wishing to sell their business to fund their retirement are having trouble finding buyers.
These findings are in line with the Reserve Bank of Australia and the Financial System Inquiry 2014, which identified a funding gap, predominantly for new small businesses.
At Apricity, we believe invoice financing can help fill this gap. We provide unsecured short-term invoice finance, without the need for personal guarantees or additional collateral. Normally, the invoices are the only security that we require.
Way to go Kate!