Business loan uptake is on the rise

By Mozo ·

The number of companies successfully applying for business loans is on the rise, according to new figures released by the Australian Bureau of Statistics.

Although trading conditions are extremely tough for a lot of organisations at the moment, it seems that plenty of firms still want to secure capital in order to expand.

There was a 9.8 per cent increase in the amount of corporations taking on commercial credit between March and April 2012. This followed on from a 10.1 per cent rise the previous month.

Revolving credit commitments were also on the up, growing by more than 25 per cent during the month.

Many economists had suggested that enterprises were trying to avoid taking on extra debts because of the shaky global economy, but these latest figures appear to contradict this view.

Business banking customers will also be hearted by recent cuts to interest rates, as the Reserve Bank of Australia has sanctioned a 75-point reduction of the national cash rate in the past two months.

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