A new report published by RedZed, Australia’s self-employed loan specialists, has found that the vast majority of SMEs across the country are skeptical about obtaining a bank loan, with 84% thinking bank loans are tough to secure. According to the RedZed Self-Employed Business Index, these SMEs believe that risk-averse lenders, issues with credit ratings, an abundance of paperwork and red tape, and the age of business act as major hurdles while trying to get a bank loan. The index raises concerns because currently, SMEs require financial support as they are struggling to recover from the impact of the Covid-19 restrictions.
