There is no shortage of press regarding the low interest rate environment, the impact that is having on the housing market, and speculation as to when and in which direction the next interest rate move will be.
While it is pretty clear that now is a reasonable time to lend money to buy property, it is less clear what this means for business and in particular SMEs. The BridgePoint Group team spent some time with some lenders at both ends of town recently to get some insight into what their perspective is for 2014.
To get a better understanding of what the banking industry sees are the big ticket items for 2014 and how you can make the here is some insight into what Australia’s banking industry foresees for 2014.
Generally the outlook for 2014 looks quite positive:
- Some credit departments are looking to relax certain internal thresholds / benchmarks, which is opening up a greater scope to do business;
- Some lenders have decent sized growth targets for this year, which means they are keen to look at new business;
- While the appetite for property backed deals will continue, there is also an increasing focus on other asset based lending including debtor finance and equipment finance; and
- There appears to be an increasing appetite for cash-flow lending to strong, well-managed businesses.
- So, the banks ARE open for business and very keen to explore new opportunities.
In our next edition we will provide you with some insight on how to give your business the best chance of a positive outcome with your lender.