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Monday, 7-Oct-2013 18:35 Email | Share | Bookmark
Banks Say Small Business Loans Riskier Than Ever








62 percent of Australian small business debt is now overdue.





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. "At the moment it is a much riskier proposition to borrow and raise money than it would have been four to five years ago," he said. "In terms of where the bank has to go to get its money, the risks have never been higher." <br>For the original version including any supplementary images or video, visit http://www.abc.net.au/news/2011-03-11/banks-say-small-business-loans-riskier-than-ever/2658426





Money flowing into California's small-business loan programs





This reserve can be tapped by the bank if the loan fails. The bank and the borrower also contribute to the reserve about 2% of the loan each. CalCAP also provides loans in partnership with the California Air Resources Board for truckers to help them comply with the state's new air-quality rules. The federal funding is being split between the two state programs. SBLGP is putting its $28 million into a trust fund that will help pay a lender if a loan issued under the program goes bad. Bob and Ruth Mitchell used a loan guaranteed by the SBLGP in 2008 to start Wide Scanners & Systems Inc. The company, run out of the couple's home in Rancho Cucamonga, wholesales wide-format scanners used to produce large documents, such as architectural plans. <br>For the original version including any supplementary images or video, visit http://articles.latimes.com/2011/apr/11/business/la-fi-smallbiz-loan-20110411





Loan agreements – 6 key clauses to watch





Whenever the RBA decreases the cash rate target, BBSW will also decrease, and hence the amount of interest the borrower is required to pay will also decrease. The reverse is of course also true. A floating rate loan agreement is more flexible and generally works better for businesses that are exposed to economic fluctuations. Its also important you check out the default interest clause. Default interest is charged if a borrower misses a payment on any amount which is due. Its important that the default interest rate actually reflects the costs to the lender of not receiving payment in time, otherwise it wont be enforceable. 2. Repayment You need to carefully check whether the loan in question is repayable on demand or at the end of a fixed term. <br>For the original version including any supplementary images or video, visit http://www.dynamicbusiness.com.au/finance-cash-flow/loan-agreements-6-key-clauses-to-watch-12092013.html









Thursday 06 June 2013 Article by Kevin Boyle Small businesses in Australia are now overdue on around 62 percent of their combined $10.4 billion debts but the liability is not equal between states, reports the News Limited Network. Theaveragesmallbusiness now owes around $18,624 according to the findings of new research by the Commonwealth Bank. And although 62percentof Australian small business debt is now overdue, it varies significantly state-to-state. Around 78percentof the $4.4 billion small business debt in New South Wales is now overdue compared to just 22 percent of Western Australia's $236 million debt. While the success of the mining economy passing onto businesses within the state was a proposition for the variance, the 66percentoutstanding of Queenslands $1.9 billion debt would make this imprecise. Interestingly, of the 761 small businesses surveyed that were low doc business loans Adelaide earning less than $2 million, around 57 percent of them agreed that making late payments is standard practice, while 29 percent admitted withholding payments for the benefit of their own cash holdings. But this doesn't just impact their business said Commonwealth Bank manager of local business, Adam Bennet. "When they are paying late it creates a domino effect so they are more likely to pay their own suppliers late." Mr Bennet also urged that businesses finding themselves in a difficult position should seek assistance early, whether from a business coach, bank or else where. Business owners looking for the best business banking products for their companies finances can compare business banking accounts, savings accounts, loans and credits cards on Mozo . Have a question about business bank accounts? Ask the gurus on Mozo Answers . <br>For the original version including any supplementary images or video, visit http://mozo.com.au/business-banking/articles/62-percent-of-australian-small-business-debt-is-now-overdue/3408508037



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