May 9, 2016
Marketplace invoice finance startup, FundX, believes the 2016–17 Federal Budget involves more rhetoric than solid action when it comes to Australian innovation, startups and SMEs, with a stated commitment to the national innovation agenda failing to be backed up by internationally competitive investment in initiatives that foster growth in the sector.This may indicate that Australia is still behind in adopting the mindset needed to compete on a global scale, according to FundX, with a continued need for legislative frameworks that attract investors, entrepreneurs, and skilled tech workers, and allow domestic businesses and innovation to flourish.
This may indicate that Australia is still behind in adopting the mindset needed to compete on a global scale, according to FundX, with a continued need for legislative frameworks that attract investors, entrepreneurs, and skilled tech workers, and allow domestic businesses and innovation to flourish.Looking overseas to Asia, the Middle East and Europe, there are far greater levels of investment in innovation abroad, said David Jackson,
Looking overseas to Asia, the Middle East and Europe, there are far greater levels of investment in innovation abroad, said David Jackson, Founder and CEO of FundX.
In comparison, the government’s pledge of $200,000 to promote Australian FinTech internationally seems to have a few zeroes missing – significantly more than this will be needed if we are to truly raise our game and attract the big investors to Australia.
When you get down to it, the elephant in the room in this budget is a receding level of tax revenue contra a rising level of demands upon the tax pool.
This increases the importance of seriously committing to creating and fostering an ecosystem in which innovation, startups and SMEs can flourish, in order to generate economic growth, stimulate employment, and create more disposable incomes and tax receipts, said David Jackson.Budget measures may have mixed impacts on Australian SMEs specifically, according to FundX.
Budget measures may have mixed impacts on Australian SMEs specifically, according to FundX. Some Australian businesses may see real benefits from the proposed tax cuts and higher deductions in assets for SMEs, continued David Jackson.
However, risks to SMEs may arise from other areas of the budget: lower income earners and the majority of middle-income earners are not seeing any real tax breaks while cuts in other sectors could potentially cause some in this group to be thousands of dollars worse off.
This could result in diminishing disposable incomes placing spending restraints upon this group, posing an enormous threat to the cash flows of Australian SMEs, and potentially even leading to a small rise in bankruptcies and failures.
Though there are a number of FinTechs emerging with tech-based cash flow solutions for these SMEs, there is still a broad lack of awareness and adoption of these solutions in Australia.
We, therefore, encourage the government to not only continue putting innovation on the national agenda but to also take concrete measures that allow it to grow and flourish, concluded David Jackson.
FundX is an Australian startup that provides short-term funding options for SMEs. For more information please visit:http://fundx.com.au/about/
FundX (www.fundx.com.au) is a marketplace invoice-financing platform that uses big data, machine learning and predictive algorithms to provide risk-based funding to SMEs where bank finance is unavailable.
Founded by serial entrepreneur, David Jackson, FundX allows SMEs to advance funds on the receivables of their clients. Its technology platform provides a loan decision in less than one minute, and funds are delivered within 24 hours. Because FundX is integrated directly into a business’s accounting software, selected invoices can be cleared immediately, regardless of how long it takes customers to pay.