Judo Bank reveal hiring staff and raising wages high on SME wish lists. So what’s stopping them?

By Tom Watson · · 2 min read
Fact Checked
Advertiser disclosure

More staff, higher pay, better conditions? Sounds like a win-win for both employers and employees.  

According to Judo Bank’s SME Banking Insights Report for 2019 that’s exactly what Australian business owners actually want to be able to provide. 

The new research, which involved interviews with owners and managers from over 1,750 SMEs, found that more than 20% wanted to hire more staff and 25% wanted to provide higher wages and better conditions for their current staff. 

That’s if they had access to some extra funding.  

So what’s stopping small and medium sized businesses taking the leap to take out a business loan? 

Well, contrary to Australian Banking Association research released earlier this month, Judo Bank found that SME’s are not applying for finance because they’re often turned away from, or don’t trust, traditional credit providers. 

In fact, Judo Bank’s report revealed that 25% of SME’s were turned away after approaching a bank for credit. Meanwhile, trust in the banking sector, particularly with the big banks, has dropped to just 2.4/10 in the wake of the royal commission. 

“It is most definitely not a demand issue as the big banks claim,” said Judo Bank’s Chief Financial Officer, Chris Bayliss. “On the contrary, this report confirms that it is entirely a problem with supply.” 

“Our major banks gave up on SMEs long ago, and this is reflected in the growing finance gap highlighted in the Judo Bank-commissioned report.” 

“Many SMEs have obviously concluded that the big banks simply have no appetite for their financing requirements. And that may explain why SME customers remain deeply skeptical about the major banks - and unhappy with the services on offer.”

Despite all this, small and medium-sized businesses still want to borrow money, with the report indicating that 46% of SMEs want to do so in the next year. 

RELATED: Small business loan approvals from banks are at 94%, so why have applications declined?

If you’re one of those businesses looking for finance to invest in new staff, equipment or just to help you grow, check out some of the great offers below. 

Or head over to Mozo’s dedicated business loan comparison table where you’ll be able to compare over 40 different loan offers from bank and non-bank lenders.

Compare business loans 2019

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 85 products
Last updated 17 February 2025Important disclosures

Refine the list of business loans

Let’s help find you a great business loan...
  • About Great Southern Bank
    Business+ Unsecured Loan

    Borrow up to $50,000 without using your assets as security. A fixed interest rate means your repayments don’t change over the life of the loan. Apply in minutes with Business+ online or the Business+ app. Get your money fast and efficiently. $20k minimum loan amount.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 11.95% p.a. to 22.95% p.a.
    $495
    Varies
    Go to site
    Details
  • About Prospa
    Prospa Plus Business Loan

    Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.

    Interest Rate
    Upfront Fee
    Funding speed
    Interest rates vary based on risk.
    3.5%
    from 24 hours
    Go to site
    Details
  • About ScotPac
    Boost Business Loan

    Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.

    Interest Rate
    Upfront Fee
    Funding speed
    On application
    Details on application
    From 24 hours
    Go to site
    Details
  • About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.

    Interest Rate
    Upfront Fee
    Funding speed
    On Application
    3%, starting at $399
    from 3 hours
    Go to site
    Details
  • About Great Southern Bank
    Business+ Vehicle Loan

    No upfront deposit and no extra security. Fixed rate for the life of the loan giving you cash flow certainty. Quick quotes and apply online in 20 minutes. Balloon payment available. Can be used for new and second-hand vehicles up to five years old that are bought from a dealership.

    Interest Rate
    Upfront Fee
    Funding speed
    Rates range from 6.29% p.a. to 16.99% p.a.
    $0
    Varies
    Go to site
    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.