ebroker statistics reveal small business lending trends
ebroker.com.au, the ground-breaking fintech matching platform that now works with over 70 non-bank lenders, has released a series of statistics revealing insights into Australian small business lending habits. ebroker statistics are taken from a sample of just over 10,000 unique businesses using ebroker.com.au over the last 12 months, through to the end of June 2019.
ebroker.com.au COO, Heath Fitzpatrick said, “One of the key benefits of our technological innovation is the insight it gives us into our data. We’re able to see very clearly which industries are requesting finance, how much they’re requesting, what they’re requesting it for and how fast they need it. Our enquiry rate for Q4 increased by 26%, which clearly underlines the demand from Australian small businesses”.
“The average length of time a business that is looking for finance have been trading is over three and a half years. They are typically needing funds within 3 weeks.”
“Interestingly, 60% of business owners looking for unsecured finance were not homeowners. Of those, 49% were looking for funding within 72 hours, compared to just 30% that were property owners.” Heath adds, “non-property owners appear to be at a distinct disadvantage in small business with their turnover 55% less than their home-owning counterparts. It would appear the lack of access to capital at each point of the small business lifecycle is thwarting their growth and it could be said, growth of our economy”.
ebroker.com.au also found in every statistic from average trading that when it comes to average terms and the speed of funds required, non-homeowners were always in the weaker position. Except in the case for total funds required, this being one third of homeowners.
When it comes to industry type, looking at the ebroker statistics for the entire year, the construction industry and building and trade were the sectors making most inquiries to access finance. “In Q1, construction industries, including building and trades, held the highest inquiry statistic for each and every month,” continues Heath. “In the following Q2, Q3 and Q4, the construction industry repeatedly featured heavily in loan requests.”
- Average length of time a business looking for finance has been trading for is over three and a half years. Typically, they’re looking for funds within 3 weeks.
- 40% need finance within 3 days.
- 60% of inquiries come from people who were non-homeowners.
- 49% of non-homeowners were looking for funds within 72 hours compared to 30% of homeowners.
- For businesses with a turnover of under $2.5million, non-homeowners turnover is 55% less than their homeowning counterparts.
- Inquiry rates for Q4 of 2019 increased by 26 per cent.
- Sample was 10,124 unique businesses using ebroker.com.au online over the last 12 months were businesses trading more than 6 months with turnover less than 2.5million
The top 3 industries requesting finance between 1 July 2018 and 30 June 2019 were:
- construction, building and trades
- hospitality (restaurants and cafes)
- transport and automotive