In 2016 it as reported that by 2020 Australia’s alternative lending sector would be mainstream. Today in 2020, it is fair to say that this prediction has come to fruition with Australian small to medium enterprises (SMEs) more likely to use non-bank financiers to funds their business growth.
This reflects the significant change that Australia’s lending landscape has undertaken over the past few years. However, the rise of alternative finance as a mainstream option doesn’t stop here. An overwhelming 83 per cent of small business owners surveyed stated that they planned on using their own funds to fuel revenue growth. This aligns with research that found many business owners don’t fully understand the process and benefits of non-bank funding, suggesting there is more work to be done in educating consumers about their options.