Small businesses losing faith in the banks

words by Finlease

 

“Recently we’ve seen a significant deterioration in loyalty being shown by small to medium businesses toward their banks. In fact, loyalty has fallen 239% over the past 3 years. This is not surprising really given recent events, especially in the wake of the GFC.

Many businesses in the $1-5 Million annual turnover range are increasingly turning to third party brokers like us at Finlease to source equipment finance.

A number of factors have brought about this situation:

  • the perceived lack of funding available from the major banks
  • withdrawal of multinational banks has also limited funding
  • increased competition for available funds
  • shorter time in a given positions by ‘relationship managers’, meaning they have little chance to understand how a particular business is tracking
  • financiers are seeking more information in finance applications, which is time consuming for small business operators

This tougher climate provides further justification for enlisting the services of a specialist business finance broker to serve as your advocate in sourcing equipment finance or in fact all forms of business finance.”

Mark O’Donoghue
Finlease (Aust) Pty Ltd
1300 FINLEASE (346 532)

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