Business Banking news and advice

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

  • Business confidence plummets in May, survey shows

    Thursday 14 June 2012

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    Business confidence across Australia has fallen to its lowest ebb since August 2011, new figures have found. Trading conditions are still very challenging down under and it appears that companies are worried about their future prospects. Roy Morgan Research's latest corporate confidence index dropped by 6.4 points in May – down from 112.2 in April. Organisations are concerned about the global economy and do not hold out much hope of an upturn in the next 12 months. Industry communications director at Roy Morgan Research Norman Morris said that firms are reluctant to take out business loans in order to expand, even though interest rates have been cut across the country. He added that just 48 per cent of enterprises feel that the next year will be a good time to invest, which is the lowest figure since December 2010. "Victoria was hit the hardest but remained around average, while Western Australia is still the most optimistic state and Tasmania and South Australia continue to lag," Mr Morris remarked. Have a question about business banking? Ask the money gurus at Mozo Answers.

  • Businesses need to adapt to cope with exchange rates

    Wednesday 13 June 2012

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    So far, 2012 has been an extremely challenging year for companies in Australia and many are facing a constant battle to remain profitable.

  • Business loan uptake is on the rise

    Tuesday 12 June 2012

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    The number of companies successfully applying for business loans is on the rise, according to new figures released by the Australian Bureau of Statistics. Although trading conditions are extremely tough for a lot of organisations at the moment, it seems that plenty of firms still want to secure capital in order to expand. There was a 9.8 per cent increase in the amount of corporations taking on commercial credit between March and April 2012. This followed on from a 10.1 per cent rise the previous month. Revolving credit commitments were also on the up, growing by more than 25 per cent during the month. Many economists had suggested that enterprises were trying to avoid taking on extra debts because of the shaky global economy, but these latest figures appear to contradict this view. Business banking customers will also be hearted by recent cuts to interest rates, as the Reserve Bank of Australia has sanctioned a 75-point reduction of the national cash rate in the past two months. Have a question about business banking? Ask the money gurus at Mozo Answers.

  • Business conditions 'worst in three years'

    Tuesday 12 June 2012

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    A new study conducted by National Australia Bank (NAB) has confirmed that trading conditions have fallen to a three-year low across the country. Firms have found it difficult to remain profitable since the recession took effect and confidence levels are on the wane. The NAB index showed that business conditions fell by six points to minus two in May, while corporate sentiment also dropped by four points to minus four. Most of the downturn has been attributed to the ongoing financial turmoil in Europe, as organisations down under are fearful of a full-scale economic collapse. Surprisingly, official figures released by the Australian Bureau of Statistics indicated that uptake of business loans has increased in recent months. Chief economist at the NAB Alan Oster said: "The latest bout of volatility on global financial markets is starting to impact on business planning with some of the latest surveys pointing to a softening in the outlook for Europe." Have a question about business banking? Ask the money gurus at Mozo Answers.

  • ANZ passes on RBA cut in its entirety

    Friday 08 June 2012

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    ANZ has passed on the Reserve Bank of Australia's (RBA) interest rate cut to its business banking customers. Many economists had predicted that few of the country's major lenders would sanction a full 25-point cut, but ANZ appears to have proven them wrong. Following the company's monthly interest rate review, bosses at the firm revealed that variable rate mortgage holders and small business loan customers would benefit from the reduction. Chief executive officer at the institution Philip Chronican said it was important to give struggling Aussies a helping hand, even though banks are being blighted by high funding costs. "Hopefully this decision will help relieve some of the pressures that we know homeowners and small businesses are facing at present," he remarked. However, it is not such good news for Westpac customers, as the bank has only cut its mortgage rates by 20 points. Attention will now turn to the Commonwealth Bank and National Australia Bank, as neither lender has reacted to the RBA's rate cut as yet. Have a question about business banking? Ask the money gurus at Mozo Answers.

  • Many SMEs use home loans to fund businesses

    Wednesday 06 June 2012

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    A worrying number of business banking customers are using their home loans to keep their companies afloat. New figures released by corporate solutions provider MYOB have shown that 28 per cent of small and medium-sized enterprises (SMEs) use money from their own mortgages to fund their firm. This means that people in this position are doubly affected by any fluctuations in national interest rates – as it impacts their business and home life. The study showed that the practice is more common in certain parts of Australia than others. Indeed, entrepreneurs in Western Australia are least likely to use their home loan to pour money into their organisation, while the process is most commonly used in Queensland. Chief executive officer at MYOB Tim Reed said that it is a particularly tough time to be running an SME down under. "Business conditions are still sluggish and one quarter of SMEs expect their revenue to drop between March this year and March 2013," he remarked. Have a question about business banking? Ask the money gurus at Mozo Answers.

  • Relief for businesses as Australian economy expands

    Wednesday 06 June 2012

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    Struggling companies throughout Australia can breathe a small sigh of relief as new figures showed the economy is in better shape than many people had originally thought. The Australian Bureau of Statistics has confirmed that the nation's gross domestic product grew by 1.3 per cent in the first quarter of 2012, which followed on from a revised increase of 0.6 per cent in the previous three-month period. This is encouraging news for firms across the country, especially at a time when many economists had been predicting doom and gloom. News of the upturn may also encourage more organisations to take out business loans in order to expand. Banks provide essential funding to upstart companies, but a lot of enterprises have been wary of taking on extra debt while the economy has been so shaky. "It does tell you we had a decent amount of momentum in the run up to the latest round of the European woes, and it's not a bad place to be in," commented chief economist at the Commonwealth Bank of Australia Michael Blythe. Have a question about business banking? Ask the money gurus at Mozo Answers.

  • Businesses continue to embrace mobile banking

    Friday 01 June 2012

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    Business banking customers are increasingly keen to access their accounts via mobile devices. Online banking has taken off rapidly in recent years and it seems that companies are embracing the concept just as much as Aussies on the street. Westpac bosses recently confirmed that it now has more than one million mobile banking customers – consisting of personal and business clients. They suggested that uptake of smartphone services has soared by 90 per cent in the past 12 months and this is likely to increase sharply in the near future. Overall, 30 per cent of all online bankers utilise their mobile handsets to check their balances or to make payments. The institution also confirmed that small and medium-sized enterprises account for 15 per cent of all mobile users. "Banking is being transformed by the use of technology such as smartphones and these figures prove that this trend is only going to accelerate," commented Jason Yetton – group executive at Westpac Retail & Business Banking. Have a question about business banking? Ask the money gurus at Mozo Answers.

  • Businesses need to invest more wisely

    Tuesday 29 May 2012

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    A lot of companies rely on business loans in order to expand, but are they using the money effectively? Sensis, in conjunction with the Australian Interactive Media Industry Association, has conducted a study which shows many firms are throwing money away on social media projects. More entrepreneurs are keen to increase their enterprise's presence on websites such as LinkedIn, Twitter and Facebook in order to connect with a greater number of potential clients. However, doing this professionally can be very expensive and the results are not always worth the initial investment. The report found that too many organisations fail to set up a solid social media strategy. "A sizeable proportion of businesses investing in social media are unaware of the actual amount they've invested, and don't measure the return on their investment," it read. With so many firms struggling financially, spending money so recklessly is unforgivable in the current climate and the study suggests that some corporations need to have a tighter grip on their budget. Have a question about business banking? Ask the money gurus at Mozo Answers.

  • Australian businesses need to 'catch up' on payment systems

    Monday 28 May 2012

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    Australian companies could be missing a trick by persevering with outdated payment methods. With money so tight for many firms, a lot of organisations have been forced to take out business loans or other credit agreements. But could enterprises be more profitable if they adopted more up to date ways of completing transactions? The Reserve Bank of Australia (RBA) certainly thinks that companies should be catering for people who want to take advantage of real-time money transfers. With so many Aussies using online banking these days, it makes sense for organisations to offer speedy payment solutions. If they don't, people will simply look elsewhere. RBA governor Glenn Stevens said that Australian firms are in danger of falling way behind their rivals in other nations. "With systems for real-time transfers available in countries ranging from the United Kingdom to Mexico, Australia's approach is starting to look a bit dated," he remarked, before adding that there is "enormous potential" for innovation if real-time payment solutions are introduced throughout the country. Have a question about business banking? Ask the money gurus at Mozo Answers.