The period leading up to the festive season traditionally sees heightened activity among SMEs, and the latest figures from OnDeck suggest that businesses are not only optimistic about the future but are also actively investing in growth opportunities. Cameron Poolman, Chief Executive of OnDeck Australia, highlighted that the uptick in loan volumes indicates a well-supported small business community eager to invest for the year ahead.
Notably, the demand for financing was broad-based, with sectors such as manufacturing, health services, transport, and trade showing strong interest. This widespread appetite for loans reflects the diverse needs of Australian SMEs and their proactive approach to seizing market opportunities.
In addition to the impressive growth in loan originations, OnDeck has made significant strides in enhancing its approval processes. The average approval time for Lightning Loans applications-up to $175,000-submitted via brokers in the second half of 2024 was reduced to 63.6 minutes, marking a 64-minute improvement from the previous year. This efficiency effectively halves the approval time, providing SMEs with quicker access to essential funds.
Poolman emphasized the importance of speed in business operations, stating that every dollar and every minute counts. By streamlining systems, OnDeck aims to offer broker partners and their small business clients the advantage of exceptional speed in loan approvals.
Looking ahead, Poolman anticipates that easing inflation and expected lower interest rates in 2025 will present brokers with expanded opportunities in small business lending. He believes that as inflation cools and interest rates begin to decline, small businesses that invest in their productivity today will have a competitive advantage in the new year.
For SMEs considering financing options, this development highlights the growing role of brokers in facilitating access to capital. The combination of increased broker-originated loans and faster approval times positions brokers as valuable partners for businesses seeking to navigate the lending landscape efficiently.
In conclusion, OnDeck Australia's substantial growth in broker-supported lending reflects a vibrant and optimistic SME sector. As businesses continue to invest in their futures, the collaboration between SMEs and brokers is set to play a pivotal role in driving economic growth and resilience.
