First the shock, then the rebound, and now – eighteen months into the pandemic – the sobering reality that SME businesses have had to pick themselves up off the floor once again to navigate the impacts of further lockdowns across much of the nation. But as our research shows, Australian SME businesses are highly resilient and, despite the challenges, are focused on growth and investment.
Given the dynamics of 2021, we felt that it was important to undertake another comprehensive health check of the SME economy six months on from the last report.
This mid-year report reveals that one in two SME businesses (with a turnover of $1 million to $50 million) are in a growth/expansion phase, whilst one in two also attempted to access new funding in the last six months.
Sadly, this report shows that some things never change, particularly when it comes to the major banks. With unmet funding needs and significant delays in accessing funding even when successful, the SME business sector is often slow walked by the major banks. Stifling the full potential of SME businesses and their role in economic recovery.
The findings also show that the fortunes of SMEs are often highly dependent on where they operate – painting a clear picture of a multi‑speed economy. Where the country is split along State and industry sector lines, between the Haves (Queensland and Western Australia) and the Have Nots (Victoria and South Australia).
Despite the vast amount of Government stimulus and support offered to the banks, this report finds that over one in four SMEs are being knocked back from accessing new funding. This has direct implications for business investment and employment, with the report revealing that over one in four of those SMEs refused a loan were in effect, stopped from employing on average three additional staff members.
And adding insult to injury, the report shows that banks are taking on average 42 days to discharge loans when an SME switches lender. These unnecessary loan transfer delays by the banks inhibit fast access to funding at a time when SMEs need it most.
Australian SMEs deserve better – and that’s where Judo Bank comes in.
Built with a purpose to be Australia’s most trusted SME business bank, at Judo we are bringing back the craft of relationship banking. Banking as it used to be, banking as it should be.
Our strong growth since inception, including accelerated growth during the pandemic means we are reaching more and more SMEs nationwide, providing them the funding they need, when they need it most, with the level of service they deserve.
Judo Bank Chief Relationship Officer, Angelo Manos
Disclaimer
This document has been prepared by Judo Bank Pty Ltd ABN 11 615 995 581 AFSL 501091 (“Judo Bank”). Any advice contained in this document has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice in this document, Judo Bank recommends that you consider whether the advice is appropriate for your circumstances.
So far as laws and regulatory requirements permit, Judo Bank, its related companies, associated entities and any officer, employee, agent, adviser or contractor thereof (the “Judo Bank Group”) does not warrant or represent that the information, recommendations, opinions or conclusions contained in this document (“Information”) is accurate, reliable, complete or current. The Information is indicative and prepared for information purposes only and does not purport to contain all matters relevant to any particular investment or financial instrument. The Information is not intended to be relied upon and in all cases anyone proposing to use the Information should independently verify and check its accuracy, completeness, reliability and suitability and obtain appropriate professional advice. The Information is not intended to create any legal or fiduciary relationship and nothing contained in this document will be considered an invitation to engage in business, a recommendation, guidance, invitation, inducement, proposal, advice or solicitation to provide investment, financial or banking services or an invitation to engage in business or invest, buy, sell or deal in any securities or other financial instruments.
The Information is subject to change without notice, but the Judo Bank Group shall not be under any duty to update or correct it. All statements as to future matters are not guaranteed to be accurate and any statements as to past performance do not represent future performance.
Subject to any terms implied by law and which cannot be excluded, the Judo Bank Group shall not be liable for any errors, omissions, defects or misrepresentations in the Information (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the Information. If any law prohibits the exclusion of such liability, the Judo Bank Group limits its liability to the re-supply of the Information, provided that such limitation is permitted by law and is fair and reasonable.
This document is intended only for clients of the Judo Bank Group, and brokers who refer customers to the Judo Bank Group, and may not be reproduced or distributed without the consent of Judo Bank.
The Information is governed by, and is to be construed in accordance with, the laws in force in the State of Victoria, Australia.