Insurance, energy costs, and taxes and government charges, are the big three business costs weighing on business owners, according to the latest Business NSW Business Conditions Report.
In the lead up to Christmas, just over three-quarters (76%) of business owners identified business costs as a barrier to profit growth and three in five (61%) respondents name business costs as an impediment to business expansion[ii].
“As a non-bank business lender, with a range of finance facilities for SMEs and a dedicated small business team, Moneytech is familiar with the expansion and profit barriers faced by business outlined in the Business NSW report,” Moneytech head of small business, Reece Ketu said.
“Business costs are impacting the survival and growth of businesses in NSW, however as the report identifies, the vast majority of NSW Businesses are investing in initiatives to improve productivity.”
The Business NSW report identifies staff training, machinery and equipment, and IT programs as the top three initiatives NSW businesses invested in to improve productivity over the past 12 months[iii].
“Moneytech’s data mirrors that presented in the report, with managing business costs and investing to grow being the top reasons business seek finance. Finance facilities can be used to free up cash flow, provide working capital for investment, or purchase equipment or machinery to improve productivity,” Ketu added.
Moneytech’s equipment finance product has grown 99% since its refreshed launch in February 2023, helping deliver greater productivity to customers purchasing or upgrading equipment and machinery. Other finance solutions including debtor finance to improve cash flow, and line of credit finance for working capital, have each seen significant growth in the past six months.
“Delivering financial solutions to assist business is at the core of Moneytech’s approach and the data reveals a strong association between the issues business face and the solutions a tailored finance facility can help provide,” Ketu said.
Moneytech’s finance facilities are assessed on the strength of the business and not against personal assets, ensuring personal assets are not at-risk.