The challenges of the past two years have had a huge impact on businesses, but now it looks like they are starting to bounce back.
Recent statistics from analytics firm Equifax show applications for business loans are on the rise, meaning more businesses are feeling optimistic and ready to grow and expand after all the uncertainty. .
Equifax’s Quarterly Business Credit Index highlights changes since the December 2020 quarter:
- Overall business credit applications increased by 9.7%
- Asset financing requests decreased by -3.5%
- Demand for business loans in the accommodation and food services sector has seen a significant increase, up 33% compared to the fourth quarter of 2020 and 11% compared to the same quarter in 2019
- The retail sector also saw an increase in demand for business credit, up 18%.
Interestingly, there has been growth in demand for business loans in the accommodation and food service sector, showing that even the businesses hardest hit by the pandemic are regaining confidence and looking to rebuild and develop.
Government support for your business
Some companies that have been particularly affected by the pandemic have needed additional financial assistance. One response has been government implementation of support programs.
For example, a billion dollar support package for small and medium sized businesses in NSW was announced in January this year. The Small Business Support Program is intended to target small and medium-sized businesses that have suffered from the Omicron outbreak. To gain access, companies must prove that they suffered a 40% loss in January and February 2022. Applications are currently open via service.nsw.
If you are a sole proprietor or small business nationwide, COVID-19 financial assistance is available to you, depending on your location. You can find the latest government aid relevant to your state or territory online.
Looking to boost your business with a loan?
Running a business can often require more financing than you currently have access to. There are ways to help your business recover in difficult times. For example, a business loan allows you to access money to help you start or grow your business and repay it when you are in a better financial position.