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Business Banking news and advice

All the latest business banking news and top tips to help you manage your business banking.

  • Business lending down in February, new figures show

    Monday 16 April 2012

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    The number of companies taking out business loans fell sharply in February 2012, reigniting fears that economic growth will be subdued this year. New figures released by the Australian Bureau of Statistics have indicated that total commercial finance commitments were down by 8.4 per cent during the month, following on from a 1.5 per cent dip in January. Revolving credit arrangements fell by 26.6 per cent in February, despite a rise of 0.3 per cent the previous month. Many company owners and trade unions have urged the Reserve Bank of Australia (RBA) to lower interest rates in order to give struggling enterprises a helping hand. However, it seems the country's major banks are increasingly setting their rates independently of the RBA, with ANZ announcing last week that the rates attached to its business packages would go up by 0.06 per cent. Entrepreneurs are worried that other lenders will follow suit, leaving Australian enterprises with even more financial problems. Have a question about business banking? Ask the money gurus at Mozo Answers.

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  • ANZ announces interest rate hike

    Friday 13 April 2012

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    Company bosses have been urging banks to lower their interest rates in recent weeks, but unfortunately their calls appear to have fallen on deaf ears. The Reserve Bank of Australia (RBA) has been criticised by trade unions for its failure to enforce rate cuts so far in 2012. Business owners believe firms are facing a constant battle to remain profitable while the standard cash rate remains at 4.25 per cent. However, ANZ announced today (April 13th) that it will be hiking the interest rates attached to its business loans by 0.6 per cent from April 20th. This will add the equivalent of $1.50 per week to repayments of a loan in the region of $130,000, the company confirmed. The increase is also being applied to home loans and chief executive officer at the bank Philip Chronican said higher lending costs have forced the company to take these measures. "We accept our response to the new funding environment is difficult for some of our customers – even though deposit customers have benefited from better rates," he remarked. Have a question about business banking? Ask the money gurus at Mozo Answers.

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  • Businesses are still getting access to capital, says NAB

    Thursday 12 April 2012

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    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. Have a question about business banking? Ask the money gurus at Mozo Answers.

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  • Rate cut needed to ease business banking pressure

    Wednesday 11 April 2012

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    Companies throughout Australia are finding it increasingly difficult to remain profitable while the dollar retains its high value. Lots of firms – particularly small upstart enterprises – are reliant on loans in order to grow, but with standard interest rates still at 4.25 per cent, many are struggling to find suitable business banking options. Indeed, the Reserve Bank of Australia (RBA) has opted not to lower rates this year and this prompted some institutions to hike the rates attached to packages such as business loans. The Australian Chamber of Commerce has urged the RBA to reduce the cash rate by 0.5 per cent as soon as possible so that corporations can get easier access to credit. Chief executive of the organisation Peter Anderson insisted that urgent action is needed to stimulate more economic growth down under. "The time has come for Australia's central bank to move decisively to cut rates by a full half a per cent and for the retail banks to immediately pass it on," he remarked.

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  • Interest rates news 'is bad for businesses'

    Tuesday 03 April 2012

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    Although many economists were unsurprised by the Reserve Bank of Australia's (RBA) decision not to lower interest rates, the news has drawn criticism from certain quarters. Bosses at the Housing Industry Association (HIA) believe the RBA has missed a golden opportunity to restore confidence in the business banking sector. Many companies with expansion aspirations have been wary about taking on loans because they fear that lenders will hike their interest rates. Senior economist at the HIA Andrew Harvey said that other than the mining sector, there has been little growth in the Australian economy and the time is right for further interest rate reductions. He added that the RBA will come under increasing pressure to enforce at least one cut in the next few months. "Given the current global and domestic economic conditions a rate cut today would have been the appropriate call, but regrettably the Reserve Bank Board did not take that decision," Mr Harvey remarked. Have a question about business banking? Ask the money gurus at Mozo Answers.

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  • Lending to Aussie businesses grew last month

    Friday 30 March 2012

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    One simple way to assess the current state of the economy is see how much money companies have been borrowing from banks across Australia. It is usually a good sign when a greater number of firms are approaching lenders for extra capital, as it shows that enterprises are looking to expand. Unfortunately, recent statistics compiled by DBM Consultants indicated that the number of organisations looking to open a new lending account fell to 10.4 per cent in November 2011 from 14.4 per cent in June 2010. However, more up-to-date figures released by the Reserve Bank of Australia this week are far more encouraging. They show that business banking customers are starting to apply for more credit, as the number of loans issued by Australian banks in February grew by 0.4 per cent compared with January, Bloomberg reports. This also represented a 1.2 per cent increase on February 2011, which suggests that business growth is moving in the right direction. Have a question about business banking? Ask the money gurus at Mozo Answers.  

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  • IBA wants to see more business loans being dished out

    Wednesday 28 March 2012

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    Although lending conditions have become far tougher in recent months, upstart companies across Australia are still dependent on financial assistance from banks in order to get themselves established. A recent study by DBM Consultants indicated that many firms have adopted a more cautious approach to loans due to the volatile economic climate, but many enterprises have little choice but to get some help from a lender. Leaders at Indigenous Business Australia (IBA) believe that more business banking options need to be made available to Aborigines who are trying to set up their own corporation. Chief executive Chris Fry told the Australian that the organisation was in discussion with the nation's major banks about improving the services offered to Aborigines. He said the demand for business loans had increased notably in recent months and budding entrepreneurs need capital and advice regarding business ideas. Mr Fry insisted the group had already achieved great success by approaching banks over home loans for indigenous people. Have a question about business banking? Ask the money gurus at Mozo Answers.  

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  • Business banking sector becoming more high-tech

    Tuesday 27 March 2012

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    It seems that Aussies cannot get enough of new technological developments and these are playing a leading role in transforming the country into a cashless society. More devices are being built with near field communication capabilities, which allow smartphone owners to wirelessly pay for items in shops simply by flashing their gadget against a scanner. The business banking sector is also becoming more high-tech, as recent research conducted by PayPal showed that 50 per cent of micro-businesses (those with four employers or fewer) already use smartphones to complete corporate tasks, Financial Review reports. "If you look at those numbers, it became an obvious transition to accept payment on smartphones," PayPal spokesperson Adrian Christie told the news provider. The company recently released a credit and debit card reader that can be fitted to a smartphone and this was targeted specifically at the business sector, while National Australia Bank has also launched sophisticated packages for enterprises to utilise. Have a question about business banking? Ask the money gurus at Mozo Answers.

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  • Businesses shunning loans because of high interest rates

    Wednesday 21 March 2012

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    Companies in any country need funding in order to expand and banks play a major part in ensuring enterprises are able to grow. However, it seems that many firms in Australia are unhappy with the business banking options being made available to them and are shunning credit packages as a result. The Australian Bureau of Statistics recently indicated that commercial financial commitments declined throughout the nation in January and a new study conducted by DBM Consultants appears to back this up. It found that the number of small and medium-sized enterprises considering opening a new lending account fell to 10.4 per cent in November 2011 from 14.4 per cent in June 2010. Many business owners cited the wide margins between the cash rate and interest rates being offered by the country's banks and lenders on their loans. The research also suggested that many small firms are looking to switch their bank account provider, as they believe there are better deals out there. Have a question about business banking? Ask the money gurus at Mozo Answers.  

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  • Businesses borrowed less money in January

    Friday 16 March 2012

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

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