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Business borrowing harder now than 12 months ago

Australian small and medium businesses are finding it increasingly difficult to borrow from banks in the financial crisis, according to research conducted by Melbourne-based DBM Consultants.

The Business Financial Services Monitor found that of the 740 businesses surveyed, 47 percent believe it is more difficult to borrow now compared to 12 months ago, while 17 percent said there was no change.
New businesses in particular were finding it difficult, says DBM Consultants Managing Director, Mr Dhruba Gupta.

“Most of the increase in difficulty is associated with new business loans. This is a concern as new business investment will be a key factor in the economic recovery.”

On an industry basis, those working in wholesale trade reported more difficulty than any other industry with 71 percent experiencing problems, while finance and business (61 percent) and transport and storage (54 percent) also reported above-average difficulty.

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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