Thursday 31st January 2013
|Text too small?|
Sydney, January 31, 2013 – RBA credit data released today highlights modest growth in business credit in December after two months of falls. Business credit increased by 0.7 per cent over December, after falling 0.7 per cent in November and 0.3 per cent in October.
Over the year to December, business credit increased by 2.8 per cent. However, that lagged credit growth in the broader economy.
Bibby Financial Services, the leading global debtor finance specialist, said a further cut in interest rates would help to boost levels of business borrowing, create jobs and offset a slowdown in the labour market.
“While business credit grew in December, the overall pace of business growth credit slowed in the last few months of 2012, reflecting business concerns about a slowdown in the domestic economy,” said Gary Green, National Head of Sales, Bibby Financial Services.
“Domestic sectors in Australia remain under pressure as households stick to paying down debt or saving. The housing sector could continue to struggle given the climb in the unemployment rate, which jumped to 5.4 in December from 5.1 per cent in January 2012.
“Now is the time for the RBA to act decisively to cement an improvement in business confidence and help boost levels of business borrowing, which would benefit all Australians,” Mr Green said.
Bibby Financial Services Australia grew by 20% pa in 2012 against the backdrop of difficult economic conditions indicating that debtor finance is becoming a more mainstream form of lending to small businesses in Australia. Bibby expects further growth of 20% pa this year.
“With regulation such as BASEL III weighing down on the banks, small business lending can be difficult to obtain. We are finding that debtor finance is increasingly being recognised as a viable and alternative form of lending to the traditional bank loan,” Mr Green said.
No comments yet
AIA June 2020 Monthly Traffic Update and July 2020 Preview
PCT - Delivering on strategy underpins strong operating result
KFL - August 2020 monthly update
BRM - August 2020 monthly update
MLN - August 2020 monthly update
Further COVID-19 Restrictions at SkyCity’s New Zealand Properties
FY20 results guidance met, Results date, Banking Facility
Sky sells OSB assets to NEP NZ, secures 10 year partnership
NZX fully operational - announcement re COVID-19
Heartland Market Update