[OPINION] How brokers can diversify to support small business

The current economic environment is no doubt tough, and small businesses are anticipating when things might become more friendly to business growth and interest rates might inch down. Residential lending is on the wane, but businesses need liquidity and the need for funding to kickstart growth is on the up.

A broker’s role is to be aware of both the economic constraints and the opportunities for growth.

Recent research* commissioned by Prospa, New Zealand’s SME financial services partner of choice, showed that SME business confidence had increased significantly over the long-term.

At the same time, Kiwi small businesses expected they would need greater levels of funding going forward (an average of $40,800), compared to loan amounts they had applied for in the six months prior (an average of $24,800). Eight out of 10 small businesses say they are becoming more concerned about accessing the funds they need.