GetCapital recently participated in a roundtable hosted by the Reserve Bank of Australia (RBA) to discuss innovation in small business finance that is emerging from outside the traditional banking system.
Chaired by Christopher Kent, Assistant Governor (Financial Markets) of the RBA, and including representatives from the Australian Treasury, the Australian Finance Industry Association and non-bank lenders, the roundtable focused on the challenges faced by SMEs when accessing credit.
Many small businesses find it hard to find external finance, particularly for expansion. Access to finance for such small businesses is important as they generate significant employment growth, drive innovation and boost competition in markets. Indeed, according to the RBA, small businesses in Australia employ almost 5 million people, which is nearly half of employment in the (non-financial) business sector. They also account for about one-third of the output of the business sector.
And while the challenge for SMEs may be greater than ever, so too are the opportunities. With more finance options available in today’s marketplace – particularly from a new breed of technology-enabled specialist lenders like GetCapital – the question becomes how to improve the flow of information and help small businesses better understand and compare the different finance products on offer.
“Transparency is everything,” said GetCapital CEO Jamie Osborn. “As a customer-centric organisation, we’re committed to providing exceptional service on fair and transparent terms to help SMEs grow. Working with the government, regulators and industry bodies to address the challenges and financial conditions faced by Australia’s small businesses is one way to achieve that”.
For example, under a comprehensive credit reporting regime, it’s becoming even more important for businesses to understand their options and the factors affecting their creditworthiness.