There’s a saying that you should make hay while the sun shines.
And in Australia, it appears the sun is still out for business owners, despite rising inflation and a gloomy global outlook.
That’s after NAB’s October monthly business survey found business conditions remained strong across industries and states, with demand “very elevated” and profitability holding up.
NAB chief economist Alan Oster said consumers continued to spend despite headwinds from inflation and interest rates – and the official data backs him up.
Household spending increased for the 19th consecutive month in September, up by a stunning 28.0% compared to the same time last year, according to the Australian Bureau of Statistics.
And Australia’s unemployment rate in September was just 3.5%, which was almost the lowest it’s been since 1974.
SME confidence on the up
Considering the tight labour market and strong demand, it’s no wonder many small business owners in Australia are seeing good times ahead, with NAB’s SME business survey for the third quarter finding SME confidence edging higher.
Unusually, the smallest firms are reported to have the strongest confidence.
What’s more, capacity utilisation rose to a survey high of 84.9%, mirroring the record set in NAB’s quarterly survey of larger firms.
“Even the smallest firms are operating close to their limits,” according to Oster.
If your business is in that position, you’re probably looking to expand. So what are your financing options?
Finding the right finance for your business
Whether you want to buy equipment to improve your productivity, invest in marketing or new inventory, or expand into a different market, finance can help fuel your business’ growth.
Choosing the right type of finance that works with your business’ circumstances and needs is important.
However, that can be easier said than done, considering the overwhelming number of business funding options in Australia, such as:
- Secured business loans
- Unsecured business loans
- Asset finance
- Equipment leasing and hire purchase
- Business credit cards
- Invoice financing
- A business line of credit
To further complicate matters, each lender has its own unique set of requirements you’ll need to meet to qualify for finance. So it’s important you choose the lender – and the type of business loan – wisely.
That’s where an experienced commercial finance broker comes in.
An expert business loan broker like NMC Finance can help you weigh up the pros and cons of the different loan types, crunching the numbers so you can be confident you’re choosing the right type of loan for your needs.
We’ll then match you to the right lender for your unique situation before structuring your application in such a way as to give you the best chance of success.
Looking for a business loan or asset finance? NMC Finance is an experienced commercial finance broker and can help. Contact Nathan Coad on 0498 766 639 or nathan.coad@nmcfinance.com.au to find out more.
* This blog is intended for general informational purposes only. For personalised advice tailored to your unique financial situation, please contact NMC Finance.
