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Sunday, 24-Nov-2013 22:49 Email | Share | Bookmark
Call For Small Business Govt Loan Backing








Call for small business loan backing





Rigid lending criteria which require businesses to provide collateral to secure a loan mean many viable small businesses miss out because they do not have adequate assets, the report by the NSW Business Chamber has found. "Our study indicates that access to finance conservatively affects more than 200,000 businesses, forcing them to slow their growth, small business loans Perth lay off staff or shut down altogether," NSW Business Chamber chief executive officer Stephen Cartwright said. "According to ABS (Australian Bureau of Statistics) data, access to finance is the number one barrier to innovation and the third-largest barrier to general business activity." Mr Cartwright said 37 per cent of loan rejections by banks were due to a lack of collateral. "Banks should be able to lend to the best businesses, rather than those with the best collateral," he said. The Small Business Access to Finance report, prepared with Deloitte Access Economics, recommends the federal government consider a partial credit guarantee scheme under which government underwrites part of a business loan. Credit guarantee schemes in the United Kingdom, Canada and the United States had delivered gains in employment, business growth and exports, the report said. <br>For the original version including any supplementary images or video, visit http://au.finance.yahoo.com/news/call-small-business-govt-loan-231008230.html





ANZ targets new small businesses with $1bn in loans



Access to finance remains a key business challenge for small businesses, which contribute about 20 per cent of Australias GDP and are together responsible for almost half of the countrys private sector employment. 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 in December 2007. This would mean ANZs commitment would boost available finance but more importantly, boost small business confidence. <br>For the original version including any supplementary images or video, visit http://www.news.com.au/business/your-business/anz-targets-new-small-businesses-with-1bn-in-loans/story-fn9evb64-1226615544661







Rigid lending criteria which require businesses to provide collateral to secure a loan mean many viable small businesses miss out because they do not have adequate assets, the report by the NSW Business Chamber has found. 'Our study indicates that access to finance conservatively affects more than 200,000 businesses, forcing them to slow their growth, lay off staff or shut down altogether,' NSW Business Chamber chief executive officer Stephen Cartwright said. 'According to ABS (Australian Bureau of Statistics) data, access to finance is the number one barrier to innovation and the third-largest barrier to general business activity.' Mr Cartwright said 37 per cent of loan rejections by banks were due to a lack of collateral. 'Banks should be able to lend to the best businesses, rather than those with the best collateral,' he said. The Small Business Access to Finance report, prepared with Deloitte Access Economics, recommends the federal government consider a partial credit guarantee scheme under which government underwrites part of a business loan. Credit guarantee schemes in the United Kingdom, Canada and the United States had delivered gains in employment, business growth and exports, the report said. The report suggests as guidelines a government guarantee of 65 to 85 per cent of a business loan at an interest rate of 0.5 per cent to 2.5 per cent over a period of up to 10 years. SHARE THIS ARTICLE: <br>For the original version including any supplementary images or video, visit http://www.skynews.com.au/businessnews/article.aspx?id=921984



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