May 25, 2011

Small Businesses More Willing To BorrowBy Alison BellNews.SMH.com.au

Small business is becoming more willing to borrow thanks to competition between big banks but a significant boost to the big four’s loan books may be months off.

Since November 2010, businesses of all sizes have been reporting a greater willingness to borrow over a 12-month horizon.

But expectations declined in April for all except the smallest micro-sized enterprises, research firm DBM Consultants reported on Tuesday.

Micro-sized businesses have annual turnovers of less than $1 million and represent 89 per cent of all Australian businesses – and 30 per cent of them do not have loans.

Those with annual turnovers of up to $200,000 expect to change their debt levels over the next 12 months, but, along with all other businesses, experienced declining sentiment toward business conditions since February.

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