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Saturday, 28-Sep-2013 09:53 Email | Share | Bookmark
Banks Say Small Business Loans Riskier Than Ever

Representatives from Westpac, St George and ANZ have appeared before the parliamentary committee which is looking at the ability of small and medium businesses to access finance. The committee says there is a public perception that banks are taking less risks, but earning big profits. The Reserve Bank of Australia told the hearing in Sydney that lending to small business is still below levels before the Global Financial Crisis of 2008. But the RBA's Guy Debelle says lending to small business does appear to be slowly increasing. "We are seeing some signs that the banks are looking to compete more aggressively for small business," he said. "So if you think about where things were in 2007, the standards were relatively easy. "They tightened up over the subsequent couple of years, but now there does seem to be some sign that banks are willing to lend." But the chief product officer for Westpac, Jim Tate says that nearly three years after the GFC, it is still a risk for banks to lend money. <br>For the original version including any supplementary images or video, visit

Amazon Offers Small Business Loans

About 32 per cent of small businesses responding to a CPA Australia survey last year said finance was easy to find, down from 36 per cent the previous year. This put Australian businesses ahead of their Hong Kong counterparts (22 per cent) but behind New Zealand small businesses (42 per cent). ANZs general manager of small business, Nick Reade, said the commitment was aimed at easing cash flow for new starters. End of sidebar. Return to start of sidebar. We know the first few years of funning a small business can be challenging so today we are pledging to lend $1 billion over the next year to help Australians realise their business dreams, he said. A lot of new small business owners thing that its only big businesses that get loans from the banks but thats not the case. In the last year, we approved more than seven out of every 10 lending applications from new small businesses. Australian banks advanced $78.6 billion in new lending to businesses in the December quarter, Reserve Bank data shows, still below the peak of $111.9 million low doc loans Australia in December 2007. This would mean ANZs commitment would boost available finance but more importantly, boost small business confidence. Reserve Bank research last year said the big banks had aggressively targeted the small business sector since 2005 to move into a space previously dominated by financial intermediaries. <br>For the original version including any supplementary images or video, visit

ANZ targets new small businesses with $1bn in loans

Through the new program, called Amazon Lending, the online giant has sent many of its Amazon Marketplace merchants offers for small business loans, which will come through Amazon Capital Services, Inc. The service is an alternative source of financing for Amazon sellers who can't obtain loans through banks and traditional lenders. "Some of these businesses are only constrained by cash flow," Scot Wingo, chief executive of e-commerce advisory firm ChannelAdvisor, told Reuters . "These spot loans will help these folks grow by getting them extra cash to buy more product." An Amazon spokesman declined to tell The Journalexactly how many businesses were offered the service. However, the newspaper reports that loans for qualified businesses came with an interest rates ranging from less than 1 percent from 13.9 percent. Wingo told Reuters that some companies are receiving loans as a large as $800,000. According to Reuters, Amazon's prequalifying offers vary depending on how strong the particular merchant's sales are. The Journalsays that once an offer is accepted, Amazon will have the money in the seller's account in about five businesses days, according to a merchant e-mail offer they obtained. Sales from small business sellers comprised between nine and 12 percent of Amazon's $48 billion in revenue last year, according to The Journal. And with Amazon taking a six to 15 percent cut on all marketplace transactions, the company could benefit from helping their merchants purchase--and then sell--a larger volume of inventory. <br>For the original version including any supplementary images or video, visit

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