The imbalance is fuelling a divide between the “winners” and “losers” during the COVID-19 pandemic, with many businesses unable to secure the capital to grow.
“While many SMEs feel the frustrations with lending, the data tells us that gaining access to capital at the right time positions a business for growth,” MYOB said.
“Thirty-three per cent of the businesses that accessed finance over the last 12 months say their revenue was up compared to 12 months prior, which means that those that could lend effectively increased revenue.”
Looking ahead, 23 per cent of small business owners said they planned to access finance in the next 12 months, with more established businesses the most likely to try.
Of the 23 per cent that say they plan to access finance in the next 12 months, 36 per cent had increased their revenue compared to 12 months ago.
But many said they are frustrated with the application process for financing.
“Traditional methods are slow and cumbersome for a time poor small business. 78 per cent say businesses have to give too much detail to the bank or funding institution, so the process of applying for finance takes too long,” MYOB said.
The process meant most stayed away from financing via traditional methods, the survey revealed.
“Seventy-seven per cent agree businesses don’t have the time to jump through all the hoops to apply for financing,” MYOB said.
