Australia’s young, potential business owners are frustrated with traditional financiers and the tough requirements placed upon loan applicants. In most cases, the only applicants likely to be successful are those who have 2 years business history and/or own a house.
When you are starting out in a business venture you are unlikely to have accrued an extensive asset base or credit history which can be very frustrating if you are young, enthusiastic and looking to ‘get rich quick’.
“The banks are too demanding,” says Peter Hansen, Jims Mowing Master Franchisor “I think the banks actually encourage failure because the criteria is so tough. We get young, fit, enthusiast, potential business owners wanting to buy a franchise, but they’re uncomfortable because the banks want security which usually means – putting their parent’s house at risk.”
Contrary to popular belief, increasingly high numbers of young entrepreneurs entering into business each year suggests that they actually do understand the importance of working hard to achieve business success. However they face a ‘Catch 22’ due to the banks financial criteria and are left confused about how to start a business. Income from the business helps to build up their asset base, however banks are unwilling to provide them a loan unless that asset base is already in place. If you take into consideration the spiralling cost of housing, it is a wonder young people can get a start in business at all.
“I’ve got family who helped me out,” said Dax Hogno, owner of Jims Mowing Wattle Grove, situated in the South West of Sydney, “but if I didn’t, I definitely would have run into trouble. I’m 24 years old – banks aren’t willing to talk to people like me because we don’t have extensive credit histories.
Luckily, there is a solution for young, budding entrepreneurs. EZY Rental Equipment provides equipment funding solutions that enable young entrepreneurs to achieve their full potential and keep their options open. Security on personal assets is not required and home ownership is not a pre-requisite. One of the main goals is to help assist entrepreneurs in preserving their cash to grow their business.
“Assisting young entrepreneurs to get a start is one of the core philosophies that underpins our business,” says Glenn Camilleri, Managing Director of Ezy Rental Equipment, “We also know that if we support a business when they are young and growing, they will show us loyalty later when their business is thriving.”