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How Banjo Supports Australian Steel Manufacturers Finance Growth & Innovation
HOW BANJO SUPPORTS AUSTRALIAN STEEL MANUFACTURERS TO FINANCE THEIR GROWTH AND INNOVATION
BANJO'S ANNUAL SME COMPASS REPORT IS THE RESULT OF RESEARCH AMONG A WIDE RANGE OF SMALL TO MEDIUM ENTERPRISES (SMES) ACROSS AUSTRALIA. THIS YEAR'S REPORT PROVIDES RICH INSIGHTS INTO HOW SMES ARE PERFORMING IN 2022, THEIR VIEW OF THE NEAR FUTURE, AND HOW THEY WERE IMPACTED DURING 2021.
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According to Guy Callaghan (Chief Executive Officer, Banjo Loans), "The SME Compass Report is released by Banjo Loans annually. We interview over 500 SMEs nationally—all different sized businesses, from various industries. We work to have a minimum 30% female participation rate, as 30% of our borrowers are female. We ask a standard set of questions each year so that we can compare results year-on-year."
As the Compass Report indicates, in 2022, Australian SMEs are coming out of two years of the pandemic with an upbeat outlook and an eagerness to invest in the business. More companies have acquisitions in their sights. Yet many are frustrated by the traditional borrowing process and are not fully informed about the alternative options available to them.
"The results are really interesting. Business confidence is still up. As we come out of the COVID-19 pandemic, business owners are really keen for their organisations to keep growing and moving forward. Business confidence is actually higher than it was at the same time last year, which is great," said Callaghan.
In a strong sign of the health of the SME sector, significantly more Australian businesses (55%) achieved or exceeded their revenue targets in 2021 than the previous year (45%).
Those who invested in new technology, purchased new assets and increased headcount were most likely to achieve success, with the 30% who outperformed their revenue targets up a healthy 5% on last year.
"It is the businesses that have constantly invested in their business that have grown significantly more. These businesses have invested in new systems, new technology, new equipment, and hired new staff. It is the businesses that have borrowed and invested that are best placed for expansion post COVID-19."
Many are increasing investment in their businesses, with the biggest rises being in new technology (61% in 2022 compared to 51% in 2021) and marketing (50% in 2022 compared to 41% in 2021). At 55%, over half of SMEs are worried that inflation will be a barrier to growth this year. Despite this, there is high optimism for the year ahead, with 69% expecting their revenue to grow over the next 12 months, and 83% confident about the future of their business.
"There is still some concern out there about issues like inflation, and people are still wary about COVID lockdowns happening again. Another major challenge for SMEs at the moment is recruitment—getting the right people for the right job is really tough at the moment," said Callaghan. Those who expect to grow intend to improve existing products, invest in new technology and spend more on marketing in 2022 than in 2021. Banjo's new funding facility can help SMEs secure this growth.
"There are two key areas where Banjo Loans can help compared to a bank: speed to market, and, for working capital loans, we don't use security against the loan."
"Our customer service and ease of use makes us attractive. It's really exciting to see business confidence right up. While inflation and recruitment issues might persist, market optimism will outweigh those challenges. I think we're set to have a great year," said Callaghan.
This article was supplied as part of a paid advertising package.
