What are the best finance options for SMEs following the end of Jobkeeper?

With Jobkeeper set to end in just a few days’ time, SMEs across the country will soon face an economic recovery without the security of a government wage subsidy to back them up. Brokers will continue to play an important role in ensuring their small business clients have access to working capital as the next chapter unfolds. So, what are the best finance options for SMEs following the end of Jobkeeper? According to specialist commercial broker and broker manager at G&H Financial, Robert Grul, there is no ‘one size fits all’ solution.

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“What is applicable to a consultant firm is very, very different to what is applicable to a pub that was shut in Melbourne or a landscaping company,” he said in response to a question from MPA at a recent commercial broking panel hosted by Semper. “What is applicable to each customer depends on what that customer does and what they’ve got for us to utilise.”

Specialising in asset finance rather than property, Grul said he generally worked through the following options when it came to lining up working capital for an SME client.

“I will look at unencumbered plant equipment if applicable - that’s obviously a lot easier with wheeled goods,” he said. “From there I will have a look at whether I can do receivables finance for them.”

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Grul said he found that receivables, or invoice, finance worked well because it generally wasn’t property-backed and was cost-effective because of the way the debt chain worked.

“From there, either I’ll utilise those and then go into a third - and if they’re not available, I’ll look at your fintechs and your 12, 24 or 36 month loans.

“When I get a file, I’ll generally look at it in this exact order - and this order is based purely on pricing for the customer.”