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Business recovery imminent as demand for credit increases

Veda Advantage’s Business Credit Demand Index has revealed that the demand for credit applications for business has increased, in a clear sign that the road to recovery is not far off.

The index revealed that business applications for credit were up more than 22 percent in the April to June quarter 2009 on the previous January to March quarter 2009.

Veda Advantage general manager, Russell Evans, said the quarter on quarter analysis was a sign business credit demand is increasing, as business starts to regain confidence in the economy.

“Our credit bureau data indicates some healthy signs suggesting Australian businesses are starting to regain confidence and are now considering taking on a little more debt.”

Evans said the increase has been fuelled by businesses seeking car finance, off the back of the Government’s recent car rebate.

“We will be watching to see if credit applications pick up throughout the start of the 2009/10 financial year, and hopefully the month of June will set the tone for the start of the next financial year,” Evans added.