The Reserve Bank’s decision to further cut interest rates has been welcomed by small business fintech Prospa. CEO and co-founder Greg Moshal says after a year of surprises, small businesses are beginning to feel confident once more and the rate cut will bolster these feelings.
RBA cuts will boost confidence
In an interview with Startup Daily TV, Moshal commented the resilience of small business owners has allowed them to flex through this uncertain environment. Moshal described the rate cut as hugely positive for business owners.
Watch the interview with Greg Moshal
“I think the decision by the RBA is a hugely positive one. It should add more liquidity and more confidence to the sector. And I think we came off a budget that was business-friendly as well. All these things should add up.
“Finally with Victoria coming out of its lockdown – that is hugely important – not just for Victoria but for the broader economy, as we see a major contributor to GDP return. There is a lot for small business to feel confident about.”
Businesses planning for JobKeeper phaseout
Moshe praised the government for its assistance during the pandemic and says extending JobKeeper has allowed a buffer for small businesses that were still struggling. However, with the payments reduced and repayment holidays drawing to a close, Moshal suggests businesses are now looking for ways to ensure they can adjust once the temporary financial measures rollback.
“I think it’s being rolled back in a very structured way and there are still a lot of small business incentives to help businesses through this,” Moshal comments.
“What we’ve been seeing from our customer base is that businesses have been able to adjust fairly quickly. They knew JobKeeper was a temporary measure. They are now thinking about their future in a non-JobKeeper world. We are also seeing people being somewhat conservative and responsible in how they manage debt and expenses. Businesses that are planning for the future are taking the tapering of JobKeeper into account.”
While Moshal says he can’t give a definitive prediction as to when Australian business will get back to normal, he says Australia has fared exceptionally well during the pandemic. The CEO says Prospa has already seen signs of a bounceback with 70 per cent of customers who had been given a deferral on loans already returning to the fold.
“The pace of change and return to a better environment is coming at a great pace,” he confirms.
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