Businesses 'still find it hard to secure credit'

By Mozo ·

Companies throughout Australia had hoped that recent interest rate cuts would have made it far easier for them to secure business loans, but many are still struggling.

The main issue is that banks and lenders have not been keen to pass on cuts made by the Reserve Bank of Australia in their entirety – and a lot of firms are put off from taking on credit because of the poor rates.

According to director of economics at the Australian Chamber of Commerce and Industry Greg Evans, the pass-through in rates has been "reasonable".

He told the Sydney Morning Herald that one of the biggest problems is that lenders are not notifying their customers of rate fluctuations and so there is a distinct lack of transparency in the sector.

This ties in with recent findings published by Roy Morgan Research, which indicated that satisfaction levels among business banking customers continue to fall.

Mr Evans said: "What is not helping business confidence is the uncertainty around banks notifying their pricing decisions and the delayed implementation of changes."

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