A new website – financingyoursmallbusiness.com.au – has been developed the by ABA, in conjunction with CPA Australia and with the support of the Council of Small Business Australia (COSBOA) and NSW Business Chamber. It features a step-by-step guide to completing a loan application, including the do’s and don’ts, with particular emphasis on preparing a business plan
ABA Chief Executive Steven Münchenberg said.
Banks approved $88 billion in new small business loans last year, which is $11 billion more than two years ago. While banks’ lending to the small businesses sector is strong, we recognise that for some small businesses being able to access finance is still a concern. To help with this, we have developed a new website that explains what banks look for in assessing loan applications. It also shows how different types of finance may suit different small businesses. We realised that small businesses would benefit from guidance on how to present information in a loan application that goes beyond just providing the company accounts.
CPA Australia Chief Executive Alex Malley said the ability of small business to articulate the how and why of their venture is extremely important to the success of their loan application.
If we have small businesses growing, spending on new plant and equipment and expanding their markets, then they are sustaining and creating jobs and that’s precisely what our nation needs.
COSBOA CEO Peter Strong said:
This is a great initiative by the banking industry and will help people who want to start, buy or expand a business save time and stress.
NSW Business Chamber Chief Executive Stephen Cartwright said:
For small to medium businesses having access to finance is crucial to their success. Having this resource for SMEs to understand the right type of finance for their needs will help maximise their potential and in turn, help Australia’s economy to grow.
They also released a report on small business lending. Their key findings on small businesses in Australia and banks’ lending to the sector are below. The full economic report is available on the ABA website.
- There are just over two million small businesses in Australia.
- The rate of formation of small businesses is strong while the exit of businesses due to financial difficulty has fallen from its post global financial crisis (GFC) highs.
- Small businesses employ 4.7 million people equating to 44.0 per cent of all jobs in Australia.
- Small businesses contributed about one third of all industry value-added over 2013-14.
- About 30 per cent of small businesses have no debt.
- About half of small businesses have a business loan facility other than a credit card.
- There are about 1 million loans provided to small businesses.
- Bank loans to small businesses (where the loan amount is under $2 million) totalled $261 billion in December 2015.
- Almost half of all small business loan outstandings are less than $100,000.
- The interest rates on small business loans are at generational lows.
- Almost nine in every ten small businesses say they do not see access to finance, or the capacity to finance further growth in their business, as an ‘issue’.
One thought on “SME’s Get New Loan Information Portal”