Government to invest $2 billion into business loans market
Small and medium business owners may soon get better interest rates on business loans, under a $2 billion federal government investment.
The money will be injected into the small banks and non-bank lending market, through a new Australian Business Securitisation Fund.
It’s hoped the capital injection will boost funds in the lending market to create a more competitive market.
Treasurer Josh Frydenberg introduced the funding on Wednesday.
He said: "We want small business - more than three million of them - across the economy to get access to affordable finance.”
"More competition, more liquidity, stronger securitisation markets, will ensure lower rates for doing business."
Labor remains open to the idea but wants to see more details.
Small businesses worth $50 billion to local communities
New research from American Express has found small businesses reinvest $50 billion into their communities, up from $37 billion last year.
The data shows the crucial role local businesses play in the community. On average, small businesses give $10,000 to local charities, schools and sponsorships.
Despite this growing small business re-investment, the research found consumers are shopping less frequently at local stores, compared with two years ago.
Late payments painful for small businesses
The Small Business Ombudsman, Kate Carnell has announced a review of payment times, and the effects of late payments on small businesses.
Recent research from the Ombudsman’s office has revealed that 1,600 businesses find payment disputes a huge issue, with 26% not being paid the full amount and 18% not being paid on time.
The Ombudsman said there is a growing trend for payments to be delayed to 60, 90 or 120 days.