The fact that the interest rate is fixed is a significant advantage for equipment financing…
During the past week the Small Business Ombudsman, Kate Carnell, highlighted the issues facing small business when seeking loans.
In an interview in the Financial Review, she said “as much as Banks will say we have plenty of money to lend and they have, the problem is the Banks have a huge risk aversion and are assessing small business loans under the same criteria as the National Consumer Credit Act”
Excessive Documentation & Security
Kate also pointed out that Banks “continue to require excessive documentation before granting loans and that security in the form of property or cash was still required for most loans to protect Banks”.
Extreme Caution & Conflicting Messages!
Two Different Realities in Operation!
A Self-Fulfilling Reality!
Economy, Infrastructure Spend & SME’s
Balancing Risk and Commerciality
Somewhere in this, commerciality needs to apply if we are to avoid the economy falling off a fiscal cliff into a completely avoidable recession.
Access to finance in a timely manner and on commercial terms is critical if we are to successfully navigate our way out of COVID-19.
If you would like to learn about how to access the finance you need don’t hesitate to give me a call.