Sharechat Logo

RBA data shows growth in business credit

fcr.com.au

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.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report