Businesses borrowed less money in January

By Mozo ·

Companies across Australia are finding it increasingly tough to remain competitive such is the precarious state of the global economy.

There are a number of obstacles that are preventing Australian firms from expanding as much as they would like, with the high value of the dollar a particular concern.

Indeed, the strength of Australia's currency is forcing many Aussies to buy goods from overseas because they know they will get a far cheaper deal than they will at home.

The increasingly bleak outlook appears to have had an effect on the amount of money that enterprises are borrowing from banks and lenders.

Indeed, new business banking figures released by the Australian Bureau of Statistics have indicated that commercial finance commitments fell by 1.3 per cent in January, when compared with December 2011.

The study also showed that revolving credit commitments declined by as much as 3.5 per cent during the month, which is quite alarming, as bank loans are often crucial to the development of companies.

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