Small Businesses More Willing To Borrow
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.
