Onus on banks for recovery

Written on the 15 September 2010

THE reluctance of the big banks to ease tough lending conditions may be feeding a lethargic recovery, but for Australia’s largest private capital raising platform its boom-time.

ASSOB CEO Paul Niederer, says the company experienced an influx of SMEs looking for credit after being turned away by the banks.

Despite reaping the benefits of last year’s spike in the private investment sector, the capital raising platform continues to apply pressure on banks to ease lending conditions.

“We’ve certainly benefited from the lending conditions of the past year or so, so I’m not really in a position to say whether or not the banks have been making the right decisions financially – I might be a little biased in that respect,” says Niederer.

“However, more than anything I think slightly more relaxed lending standards this year will be of huge benefit to the small business sector, for which relatively small loans can really make a difference in their business’s direction and earning capacity.”

Link business brokers managing director David Fitzgerald, says the capacity of the banks to lend credit will plays a ‘huge part’ in how businesses grow over the next 12 months.

“Right across the board, businesses need access to finances in order to grow over the next year, and a lot of the lending guidelines at the moment, I feel, are impinging upon that,” says Fitzgerald.

“I can certainly see the virtue in financial frugality in tough times, but I think now is the time to start freeing up a bit of credit in order to get things flowing again.”

Fitzgerald expects the banks to ‘test the waters’ as they attempt to make money and encourage stronger cash flow.


Latest News

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

BHP AND VALE EDGE CLOSER TO $47.5 BILLION SAMARCO DAM DISASTER SETTLEMENT

BHP Billiton (ASX: BHP) and Brazilian mining company Vale have entered into a preliminary agreement with Brazilian fe...

BLK SPORT FOUNDER TYRON BRANT REMAINS CEO UNDER NEW OWNERS

BLK Sport has been purchased from receivers McGrathNicol by a private consortium composed of a TimorLeste-based oi...

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter