Access to Finance Impeding SME Growth Targets - ScotPac
(3 August 2022 – Australia) Almost one in two SMEs are struggling to hit their 2022 business targets with access to finance nominated as a key impediment, ScotPac’s upcoming SME Growth Index shows.
ScotPac has commissioned East & Partners to conduct the long running research since 2014 based on direct interviews with 717 Australian small businesses with revenues ranging from between A$1 million and A$20 million.
The latest round of reporting reveals only 46 percent of SMEs said they were on track to hit their business targets for this calendar year.
For smaller SMEs (A$1 - $5 million), roughly one in two reported being on track (50.1 percent). Staff shortages were a significant influence on this lack of momentum, with 40 percent of these affected businesses nominating a lack of employees as a major contributing factor.
One in three impacted respondents highlighted poor access to finance was a key reason for being unable to reach their revenue targets, with the average waiting time for a loan between a month and 35 days.
“This report reinforces the fact that many SMEs need support, including fast access to working capital” commented ScotPac CEO Jon Sutton.