Small and medium-sized businesses are concerned about the impact this month’s Federal election is going to have on their finances, with 59 per cent saying past elections have negatively affected their business.
According to online SME lender OnDeck Australia, businesses reported falls in revenue and a slowing in normal business operations as a result of past elections. This was because election uncertainty caused clients to hold off making major purchases or business decisions.
Over half of the 430 business-owners surveyed said improved access to cashflow would help them ride out the election uncertainty. However, many struggled to get approved by mainstream lenders which forced them to dip into their own personal funds.
Therefore, one in five said they would be open to using an online lender as they have a quicker turnaround than traditional lenders.
OnDeck Australia chief executive, Cameron Poolman, said: “Speed can be a critical advantage when preparing for events such as elections that are likely to have a short-term impact.
“While an election will change the goal posts, the key for Australian small businesses will be to keep informed, make a plan, and think ahead to create a foundation for success.”