Is your bank truly supporting your business?
Only 40% of Australian SME customers are ‘somewhat positive’ about their bank. If you’re not getting the finance support you need from your bank, maybe it’s time to look at alternative finance options?
It used to be that your bank manager was an integral part of your business. But in these digital times – where banking is less about relationships and more about online transactions – is your bank truly supporting the ongoing growth of your business?
The latest Australia Business Banking Customer Reportfrom Publicis Sapient has some interesting insights on the nature of these banking services:
40% of SME customers are only ‘somewhat positive’ about their bank
79% of SMEs prefer digital banking, but 59% still want access to local branches
78% of SMEs would rather be paid digitally, yet 49% oppose the elimination of cash services
It seems we’re caught in a moment of major change, as banks and small businesses switch from traditional services, to a more online, digital future.
But is this transition adding value for your business?
The digitisation of banking is not something you can ignore. Being able to manage every facet of your business banking from your phone is a huge upgrade in so many ways. And initiatives like Open Banking are making it easier than ever to access your banking data.
But does your bank still offer help with managing your finances? And do you have access to the ready cash and long-term funding you need to expand your company?
Here are five routes to improving your banking and access to finance:
Request a meeting with your business banker
Get to know your local business banker and build a relationship. What you’ll get is personalised financial advice and support. It also helps to discuss the financial goals, challenges and future plans of the business and how financing options, like loans and overdrafts, can help your growth.Explore the banks financing options – most banks will offer a range of financing options for small businesses. Think about business loans to fund your growth, overdrafts to manage short-term cashflow needs and lines of credit for flexible funding. It’s also worth seeing if you can claim any government-backed loans, grants or tax reliefs.
Consider alternative lending and finance options
If your bank isn’t delivering the finance you need, think about other alternative finance options. Invoice financing, merchant cash advances and specialist industry loans are all available, giving you fast access to funds. Always consider the interest rates on business loans and how repayments might affect your future cash position.
Investigate private investment opportunities
When your business has high-growth potential, private investment from angel investors or venture capital firms can be a viable option. These investors deliver the capital you need, in exchange for equity in the business. This allows you to scale the business rapidly, but does mean that your investors will want some strategic control over the future direction of the company.
See if crowdfunding is an option
Crowdfunding platforms raise funds from a large number of individuals, usually interested customers or small private investors. This can be a great way to generate capital for specific projects or to launch new products. Equity crowdfunding, reward-based crowdfunding, or donation-based crowdfunding are all options to think about, depending on your business model and goals.
Talk to us about finding the right finance support
If you don’t feel that your business bank is supporting the financing and growth of your business, it might be time to explore alternatives.
Contact our team today to discuss how we can help you unlock the funding and support your business deserves – so you have the funding you need for the future.
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