Businesses signal lift in spending
Australia's record-low borrowing costs and steady levels of confidence about growth is encouraging executives to prepare for stronger trade
According to Dun & Bradstreet's latest Business Expectations Survey, 19 percent of businesses say they are planning to lift their business spending, compared to just 9 percent that plan to invest less.
The more positive borrowing and spending outlook comes despite recent corporate requests for assistance. D&B found that 64 percent of businesses are more optimistic about growth this year compared to 2013.
Gareth Jones, CEO of Dun & Bradstreet said,"After reining in expenses through much of last year, businesses are showing a greater appetite for investment, which bodes well for the general performance of the economy this year."
Mr Jones also stated that sales expectations have recently hit a 10-year high, so it follows that businesses are looking to invest and grow operations to prepare for increased activity.
With 18.4 percent of companies planning to access new finance or credit for the purpose of growing their operations, Australian businesses are encouraged to shop around for their borrowed money. According to the Mozo database of 46 business loans, variable rates start from 4.74% (residential security) with non-bank lender First Mac and go up to 11.70% (unsecured) loan with Bendigo Bank. Compare business loan rates on Mozo here.