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Businesses are relying on loans in 2021, here’s what you need to know

With many individuals and businesses now coming to terms with the new normal, the Australian economy is beginning to improve and the next phase of COVID-19 support is beginning. At this stage, 2021 is looking promising for small and medium businesses.

91% of businesses who deferred their loan repayments during the height of the pandemic have resumed payments, and although this is an encouraging sign of recovery for the country, it is still evident that Australians require further assistance to survive in the current economic climate.

With the option to have your business loan automatically deferred finishing soon, lenders have begun their next phase of support which includes working with affected individuals directly to provide them with the best support possible so their business can continue to flourish.

However, with the majority of businesses looking to recover their losses from the previous year, business determination around the country has increased with demand for credit improving, as business owners and corporations alike look to recoup their profits.

Although the number of business loan applications have decreased compared to the previous years, several states including Queensland, Western Australia and Victoria have increased their loan applications compared to their previous quarter. Applications to finance assets have also slightly increased, and overall, this provides a promising sign for business recovery.

If you require any assistance with your business or equipment finance loan application, get in touch with our brokers who can help you throughout the whole process. Contact us today!