A recent survey from ScotPac has revealed potential reasons behind the Reserve Bank of Australia’s findings that there was little demand for new loans by small or medium sized businesses. This was a surprising result given the struggles many businesses have with cash flow as well as the attractive proposition such loans are currently given the historically low interest rates.

The ScotPac survey has revealed the biggest frustration of 8 out of 10 businesses surveyed was the loan conditions required for such borrowings. These conditions included the need to provide property as security for the loans or the need to provide personal guarantees as well as all the documentary evidence required by lenders.

According to the Reserve Bank, over 90% of such business loans in place are secured and about half of these small business loans are secured against residential properties of the owners. This is no surprise given small businesses struggle to have the assets to support the bank’s tough lending criteria.

With the rent relief and most government measures being withdrawn, cash flow will be become even more crucial to businesses moving forward. Elysium has connections with a variety of brokers who can provide the best form of finance to meet your particular needs. If you need assistance in this area, please do not hesitate to contact us.