Lenders are Starving Small Business
Lenders and Regulators are being ultra conservative and starving small business of funds. These are the words of Bruce Bilson, the Federal Minister for Small Business, in an interview last week with News Ltd.
Minister Bilson recognises that Australian Banks are increasing the amount of funds available to small business but expressed concern over excessive caution. He warned that both Regulators and Lenders have not relaxed their requirements enough since the end of the Global Financial Crisis.
The Government wants to see a lending environment where families do not have to put their home on the line to obtain business finance. They also recognise the difficulty start-up businesses face trying to obtain finance without proven financials.
Last year the NSW Business Chamber commissioned a study into the accessibility of finance for small business. The study highlighted that lack of finance affects around 200,000 SMEs and is the most common barrier to innovation. Insufficient collateral, or equity in the family home, was the highest cause of rejections by Lenders accounting for 37%.
AddCash has provided debtor finance solutions to SMEs including start-ups for over 10 years. Our invoice factoring facilities do not require a mortgage over the family home and are very affordable.
Give AddCash a call to find out more about invoice finance and how we can assist your business.