Banks' appetite for lending to small business drops, survey finds
Seventy-four per cent of small business owners believe that the banks’ appetite for lending to small business has decreased this financial year, yet they still expect to be financially better off in 2019.
According to a survey conducted by specialist business lender GetCapital, this time next year, 62 per cent of business owners expect to be financially better off, while a slim 23 per cent believe they are better off since last year.
Businesses reported that their growth is mostly impeded by the general economy (33 per cent), followed by access to capital (30 per cent), and government regulation and tax (17 per cent).
"The response to our survey is particularly revealing ahead of the federal election called for 18 May 2019, and in light of the government’s budget initiatives targeting small business announced on 2 April 2019," said GetCapital CEO Jamie Osborn.
Considering the upcoming federal election, 61 per cent of businesses consulted in the survey believe that the Coalition’s policies – as opposed to the other parties – are most likely to have a positive impact on their business.
However, less than half (45 per cent) said that they find the budget policies effective in stimulating small business growth, while 49 per cent admitted they are likely to use the instant asset write-off scheme in 2019-20.
"The asset write-off policy combined with the reduction in tax rate, provide strong incentives for profitable, tax-paying small and medium business to invest further in their businesses," judged Mr Osborn.
"Stimulating small business investment in this way is a very effective way of boosting employment growth, so there are likely to be positive flow-on effects to the general economy from these policies."