Research commissioned between a major lender and YouGov in May revealed that there’s an opportunity to the tune of an estimated $10.7 million in funding to back SMEs over the next year.
As businesses begin to expand by purchasing warehouses, equipment and fit-outs, demand for asset finance has grown.
Lenders are encouraging brokers to expand to capitalise on the ‘gold mine’ that is asset finance, with many already welcoming the push.
Data released by the MFAA showed that the number of brokers writing commercial loans has more than tripled in the span of seven years while lending has experienced a year-on-year increase of 28.65 per cent.
While many SMEs have had to survive precarious conditions in the past few years, many business owners are investing in their businesses rather than cowering away from spending.
YouGov’s research determined that 83 per cent anticipated growth for their business over the next 12 months.
Data also revealed that 43 per cent of Australian business owners and decision-makers anticipated revenue growth in the next 12 months compared to the previous year. They expect a 23 per cent annual revenue increase.
As the lending environment is constantly changing, brokers must adapt to new conditions to thrive. They will be presented with various opportunities to diversify as clients increasingly turn to them for advice.
To maximise the promising prospects, it’s advised to work together with another who specialises in the field of asset finance.
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