That's a substantial increase from the previous financial year
Banks in Australia loaned a total of $588 billion to small and medium-sized enterprises last financial year, marking a substantial 28% increase from the year before, according to new research from the Australian Banking Association (ABA).
The recently published Banking By Numbers report highlights that banks issued 302,945 new loans, totaling $200 billion, to SMEs over the course of the last financial year.
To unveil the report, the ABA and Business NSW hosted an event titled "Resilience of small business" in Western Sydney, which saw the attendance of business representatives from the region.
“This research shows banks are fuelling credit to the lifeblood of Australia’s economy, our SMEs. Banks also understand many customers are doing it tough battling a quick succession of interest rate rises, inflation and associated cost-of-living challenges,” said Anna Bligh (pictured above), CEO of ABA. “This is why today the ABA is launching a new Financial Assistance Hub, to help small businesses and customers understand what banks can do to help those experiencing financial difficulty.”
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The Financial Assistance Hub is designed as a user-friendly resource, offering step-by-step guidance for those seeking to navigate financial difficulties.
“Originally launched to assist businesses during the COVID-19 pandemic, the hub has been updated and completely revised to ensure it is useful, easy to comprehend and relevant to those in need,” Bligh said.
“We know that access to capital is critical for small businesses particularly with a perfect storm of costs across the board,” said Luke Achterstraat, CEO of the Council of Small Business Organisations Australia. “While there is more work to be done, these latest figures indicate a significant uplift in SME lending which is a positive sign.”
Bligh said that banks recognise the importance of a sustainable financial counselling model to assist customers with financial advice and support during challenging times.
“Financial counsellors get people back on track when they are experiencing the most difficult moments in their lives,” she said. “Banks stand ready to support the Government’s voluntary financial counselling scheme, committing $6.15 million in the first year, starting in January 2024.”
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