Banks Tighten up Lending as SMEs Bear the Brunt of Covid-19: Yuan Chong Talks Opportunities and Solutions
It comes as no surprise that 2020 has proved a difficult year for Australian businesses – and SMEs, with limited bargaining power and little by way of resources to tide them over are among the hardest-hit. It’s not only younger businesses that are feeling the pinch. Decades-old concerns are finding themselves foundering under the pressure. That’s particularly true for travel agents, hospitality businesses, events organisers, caterers, and even goldsmiths who find the lucrative wedding industry in slow down mode while people wait for a more favourable time to celebrate their nuptials.
At the same time, banks aren’t eager to extend credit right now. Despite “cautious optimism” for 2021, and a slight relaxation in criteria for lending to SMEs in September, it’s still tough for entrepreneurs hoping to survive the pandemic with previously-viable businesses intact.
An Opportunity for Far-Sighted Lenders says Yuan Chong of Zetara Finance Partners
Despite all the doom and gloom, it’s possible to see the light at the end of the tunnel, and Yuan Chong of Zetara Finance Partners says that there are hidden opportunities for both SMEs and far-sighted lenders who are willing to extend unsecured credit. “Right now, there is reason to believe that the end of the pandemic is in sight,” he says. “And once we can transition to normality, there will be an explosion in demand. Struggling SMEs that can survive this last lap will likely be inundated with new business as their clients, who have delayed the satisfaction of wants and needs for so long, make up for lost time.”
Obtaining finance through banks, even at the best of times, can simply take too long for SMEs in distress, but there are non-bank lenders who are willing to assist. However, the cost of processing applications for finances and the resources that it requires means that they usually work through referrals from brokerages served by business finance specialists like Zetara Finance Partners.
In essence, Zetara cooperates with a large network of referral partners to assist business clients obtain necessary funds from lenders. They get the client, and Zetara does the legwork they don’t have time for. The cost is lower than that of setting up and maintaining a dedicated business lending division, but they are able to access an under-served market and grow their client-base.”
SMEs also benefit. “The bank lending process is a cumbersome one and takes time that SME owners can’t afford to waste. At the end of a weeks-long wait, they might still find that their application for credit has been declined – even when they are willing to put personal property on the line to secure funding. When they approach Zetara Finance Partners, on the other hand, they can know where they stand in as little as 24 hours – and they needn’t offer security.”
“For referral partners, there is opportunity. For SMEs there are solutions. Zetara Finance Partners brings the two together,” says Yuan.
For more information visit the Zetara Finance – Funding Your Business Towards Success website or call their team of experts on 0482 619 996.