Lending rates for small business under scrutiny
The Australian Financial Review is reporting that the Federal Government is preparing to catalogue complaints from small businesses about their treatment by banks in regards to lending.
The report states that a central clearinghouse for complaints will be created within the Department of Small Business.
The Department of Small Business is trying to address concerns about credit being refused and rising interest rates on business loans, the report said.
The Minister For Small Business, Craig Emerson, is quoted as saying he is trying to get a clearer picture of any systemic issues, but would not intervene in bank lending until he saw evidence of banks becoming too risk averse.
The report states that the minister will meet with representatives of the major and regional banks, as well as other business groups, in Melbourne today. It is reported that the meeting will be used as a forum to discuss examples of small businesses with strong cash flows being denied credit, as well as examining a ‘list of grievances’ about bank practices prepared by the Council of Small Business of Australia.
The Council of Small Business of Australia has been campaigning for some time for the official cuts in interest rates to be passed on to small businesses.
Council of Small Business of Australia chief executive Jaye Radisich said it is in the interests of the banks for small businesses to stay in business.
“To do that small business needs a fair go when it comes to interest rates and access to credit,” Radisich said.
Senator John Williams of the NSW Nationals is also focusing on the lending practices of the banking and financial services industry, as well as the interest rates offered to small businesses, as part of a broad parliamentary inquiry partly inspired by the collapse of Storm Financial.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
