Business loans help small business community bounce back
The challenges of the last two years have had an enormous impact on businesses, however it seems that they are now starting to bounce back.
Recent statistics by analytics company Equifax show that business loan applications are on the rise, meaning that more businesses are feeling optimistic and are ready to grow and expand after all the uncertainty.
The Equifax Quarterly Business Credit Index highlights the changes that have occurred since the 2020 December Quarter:
- Overall business credit applications grew by 9.7%
- Asset finance applications decreased by -3.5%
- Demand for business loans in the accommodation and food services sector saw a significant uptick, up 33% on Q4 2020, and 11% on the same quarter in 2019
- The retail trade sector also saw a rise in demand for business loans, up 18%.
It’s interesting to note that there was a growth in demand for business loans in the accommodation and food service sector, showing that even businesses that were hit the hardest by the pandemic are now regaining confidence and looking to rebuild and grow.
Government support for your business
Some businesses that were hit particularly hard by the pandemic have needed a bit of extra financial help. One response has been the government’s implementation of support schemes.
For example, a billion-dollar support package for small to medium NSW businesses was announced in January of this year. The Small Business Support Program is set to target small to medium businesses that suffered through the Omicron outbreak. In order to access it, businesses need to prove that they suffered a 40% loss during January and February of 2022. Applications are currently open via service.nsw.
If you're a sole trader or small business around the country, there is COVID-19 financial assistance available to you, depending on your location. You can find the latest government support relevant to your state or territory online.
Looking to boost your business with a loan?
Running a business can often require more funding than you currently have access to. There are ways to help your business pick up in harder times. For example, a business loan allows you to access money to help you build or grow your company and pay it back when you have reached a better financial situation.
To learn more about some of the top business loans available, visit our Compare Business Loans page.