SMEs play a vital role in maintaining stability in the global economy. Small and medium enterprises account for more than 50% of employment and more than 90% of businesses globally. Especially for developing nations with emerging economies, formal SMEs contribute upwards of 40% of their national income (GDP). The recent global pandemic and the resultant lockdowns have been back-breaking for these small and medium-sized businesses.
Unlike large organisations, SMEs remain significantly vulnerable to unpredictable fluctuations in the market, and the current situation has forced the closures of small businesses at an unprecedented scale. Although the support for SMEs in most nations might have arrived a little late, governments have been seen to roll out support, addressing liquidity shortages. The situation has directed a substantial increase in lending volumes in some parts of the world to meet the demand. These new policies and other factors like the mask mandates and vaccination rates will dictate how SMEs can remain operational and what access/support will remain available for small businesses to finance their assets.
One of the most significant factors for small and medium-sized businesses remaining open has been the mask mandate and vaccination policies. Across the world, the areas with the highest vaccination rates have seen increasing numbers of businesses opening and employment opportunities. Most indoor venues have implemented rules allowing only customers who have been vaccinated or have a recent negative test result to enter their venues. The increased adoption of mask mandates and vaccination passports have allowed SMEs to remain operational worldwide and even garner a level of trust and sense of security from their customers. If these businesses can afford to stay functional and adapt to the changing times and needs of the customers, they remain much safer from the possibility of having to close.
For Australian SMEs who aren’t yet to witness life and business operations with a vaccinated population, the higher the vaccination rates in Australia become, the more likely businesses will be able to grow their companies again, without the thought of another looming lockdown.
When SMEs have more stability, such as from a high vaccination rate, they are more likely to have the ability to finance their assets to help them grow. However, while stable vaccination rates might allow them to stability to want finance for assets, they will first need to find a lender to loan them their finance.
Many owners and managers of small and medium-sized businesses know how difficult it can be to find a big bank lender who will provide suitable and quality finance options to SMEs, which is why many SMEs end up searching for a non-bank lender who can assist.
Grow Finance is a non-bank lender that tailors its finance solutions to the needs of small and medium-sized businesses. Once your business has the stability for growth and needs Asset Finance to help fund that expansion, Grow Finance can offer you a fast and straightforward way to finance vehicles, office technology, renewable energy solutions, or other equipment. No matter what you need, Grow Finance has the solution to get your businesses growing.
If your SME is looking to learn more about Asset Finance, get in touch with the Grow finance team today, call 1300 001 420, or visit our website to find out more.