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Australian banks launch website to help small businesses

Australian banks launch website to help small businesses

(11 May 2016 – Australia) This week, the Australian Bankers’ Association (ABA) said that local banks are helping make it easier for small businesses to access finance.

“Banks approved A$88 billion in new small business loans last year, which is A$11 billion more than two years ago,” ABA Chief Executive Steven Münchenberg said.

“While banks’ lending to the small businesses sector is strong, we recognise that for some small businesses being able to access finance is still a concern.

“To help with this, we have developed a new website that explains what banks look for in assessing loan applications. It also shows how different types of finance may suit different small businesses,” he said.

The website – financingyoursmallbusiness.com.au – was developed in conjunction with CPA Australia and with the support of the Council of Small Business Australia (COSBOA) and NSW Business Chamber.

It features a step-by-step guide to completing a loan application, including the do's and don'ts, with particular emphasis on preparing a business plan.

CPA Australia Chief Executive Alex Malley said the ability of small business to articulate the how and why of their venture is extremely important to the success of their loan application.

“If we have small businesses growing, spending on new plant and equipment and expanding their markets, then they are sustaining and creating jobs and that’s precisely what our nation needs,” Malley said.

COSBOA CEO Peter Strong added: “This is a great initiative by the banking industry and will help people who want to start, buy or expand a business save time and stress.”

NSW Business Chamber Chief Executive Stephen Cartwright said: "Having this resource for SMEs to understand the right type of finance for their needs will help maximise their potential and in turn, help Australia's economy to grow."

The move comes at a time when Micro businesses and SMEs are increasingly dissatisfied with their lenders, as highlighted by the latest figures from East & Partners’ Business Banking Index. The March Index showed that around 40 percent of small businesses have considered loan applications with non-bank lenders in the last six months, up from between 23 percent for the Micro segment and 26 percent for SMEs in 2013.

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