SME loan applications climb ahead of Christmas
Small business loan applications surpassed the monthly average in November by 145 per cent, across all industries, data analysis by OnDeck has shown.
Demand for loans was most noticeable in the service industries, such as accommodation and food services, with applications growing 190 per cent for the month of November compared with average monthly demand in 2017, OnDeck said on Tuesday.
Challenging the festive season and end-of-year trend, retail trade and wholesale trade lending remained more constant throughout the year, despite the obvious spike in consumer demand for retail products around festive periods.
Michael Burke, head of sales at OnDeck Australia, said that brokers could draw two key take-outs from the data.
“First, the patterns are entrenched across all small businesses but there are also marked differences between industry sectors. For brokers, this means looking at their clients’ businesses and understanding the impact of seasonal lending patterns on each of these businesses,” he said.
“Second, is to build an understanding of the data and its implications with their clients to work with them to ensure they take advantage of lending cycles in their specific industry and maximise growth opportunities for their business.”
According to the data, most small businesses were likely to apply for a loan in the middle of the week and during business hours.