After Australia’s lending landscape undertook significant changes throughout 2018/19, many franchisees and franchisors are thinking about what their finance options will look like in 2020. The aftermath of the banking royal commission left many business owners struggling to access funds, as the banks tightened their lending conditions in an effort to be more risk-averse.
However, during this period the need for finance did not cease, and many within the industry began looking elsewhere for funds. As a result, we began to see heavy adoption of alternative providers in tandem with a shift in what consumers value. After a culture of dishonesty and misleading terms was exposed among traditional lenders, consumers moved their priorities to lenders which displayed transparency and honesty.