Businesses are still getting access to capital, says NAB

By Mozo ·

Trading conditions are increasingly tough for companies down under and many entrepreneurs have complained about how difficult it is to secure credit from banks.

Following the economic downturn in 2008-09, many lenders were forced to tighten their purse strings and lots of banks were unwilling to issue business loans to high-risk customers.

However, National Australia Bank's (NAB) business banking group executive Joseph Healy has told the Australian Associated Press that although the recession made things more difficult, firms can still get access to funding.

He said the NAB is still keen to support small enterprises, but it must be more responsible about who it lends money to.

NAB accounts for around a quarter of all business loans handed out across the country and he believes that being able to obtain capital is vital if companies want to avoid stagnation.

"A more prudent approach to lending, generally speaking, is in everybody's interest," he was quoted as saying.

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