“We’re seeing the start of some really positive economic data right now, and business confidence is riding the crest of this wave. Yet while things are looking up, many banks are not making it any easier for small businesses.
We’re seeing research indicating that amongst Micro businesses – those in the $1-5M turnover range – attitudes towards banks are at an all time low. This comes at a time when the major banks are focussing on maintaining profits and risk management, so we feel some banks may not be delivering the level of service that small to medium sized businesses need. That will continue to make securing credit from certain banks quite difficult.
On a positive note, some significant boosts will benefit the country in general. Projects like the recent Gorgon LNG scheme will have a ripple effect across many related industries for years to come. The Government has budgeted to spend $8.6BN on schools in 2010, contributing to increased activity for the construction industry.
Consumer spending for the first half of the year rose by 1.3% leading to a reduction in inventory levels, suggested an upside to manufacturing as these stock levels are replenished. Capital expenditure is also up, partly due to the Investment Allowance and low interest rates, but that situation will not last for long.
So when you need to finance capital equipment, don’t let the banks cause you to ‘hock the house’ in order to secure a loan. In 99% of instances, we can secure your finance against the asset itself, without the need for private real estate to be used as collateral. Your Finlease broker will be happy to talk your through the finer points of what can be done and how easy the process can be.”
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