Small business start-ups require all the help they can get especially during the first couple of years of operation as these are the critical times they need to overcome in order to stay afloat and succeed in their venture.
Nearly all business start-ups have at one time or another, experienced bumps on the road resulting in financial difficulties. Opportunity to succeed may not be all that easy to achieve if there is no financial assistance from external sources. While many banks in Australia respond to this need, small businesses often find banks criteria quite rigorous and time-consuming which small businesses cannot afford. They need to find alternative solutions for their additional cash requirements.
Figures from the Australian Bureau of Statistics showed that there has been an increase of 1.4% on the value of total commercial finance commitments in March compared to February this year in trend terms while an increase of 2.3% on revolving credit commitments and 1.0% on fixed lending commitments were recorded for the same period.
A small business survey conducted by the CPA Australia Asia-Pacific in 2011 showed that only 30% of businesses had a business loan at the time of survey. The same percentage (30%) accounts for businesses that needed additional funds in the year to October 2011. Coverage for increasing expenses and business survival are the two main reasons for requiring the additional funding.
From the same survey, a much higher percentage of business owners had sought additional funding in 2011 compared to the year before, for the following reasons:
- Business survival
- Purchase of assets
- Coverage for tax payments
The percentage of businesses that sought additional funding to grow their businesses remained nearly unchanged from 2010. This may be taken as an indication of a shift in the financing priorities of small businesses from growth to survival. About one third of businesses that sought financial assistance reported difficulty in accessing additional funding mainly for lack of financier or financing institution with the willingness to provide additional funding to the business' industry.
Defined by a long-term commitment to provide the most reliable and credible lending services for small businesses in the country, Bizcash has been catering to the needs of many small businesses in Australia. Bizcash takes pride in the professional and reputable lending solutions and options they have formulated to suit the financial needs of small business and which they offer to small business owners in a no-nonsense approach. Their primary goal is to provide assistance when businesses need it.
For more information about the lending services provided by Bizcash, you may visit http://www.bizcash.com.au/.