Ability of SMBs to access finance hits five-year low

A total 31 per cent of SMBs struggled to access finance within the September quarter, down a sharp 14 on the quarter to a net balance of -17, the lowest recorded since the 2013 June Quarter report.

“In the midst of the banking royal commission, these results support fears expressed by small and medium business owners about inability to access finance,” Sensis chief executive John Allan said.

All states and territories, with the exception of Tasmania, saw a negative balance, with Victoria suffering the most with a net balance of -23, the report, which tracks SMB activity, found.

The only sector to record a positive balance was cultural, recreational and personal services (+5), while SMBs in finance and insurance (-52) found it hardest to access finance, followed by manufacturing (-28) and retail (-26).

Despite the falling confidence, 16 per cent of SMBs sought finance, up three points from last quarter. Of those, 69 per cent were successful, unchanged from the last survey.

The incidence of seeking finance ranged from 11 per cent in the ACT to 19 per cent in Queensland.

SMBs in the retail trade sector (20 per cent) were the most likely to have sought finance, while SMBs in communications, property and business services (10 per cent) were the least.

Compared with the last survey, medium size businesses no longer found it easier than small businesses to access finance.