Small business rates coming down

All major banks are working to improve their service and product offerings to small businesses. They have cut interest rates on small business loans by between 1.9% and 2.88% since September 2008 when the RBA began its 4% rate cutting cycle. Growth in lending to small business is expected to slow to one per cent, down from highs of twenty per cent in 2006.

NAB said all business rates are negotiable, Westpac is investing in better customer service, Commonwealth restructured its small business division in January 2009 and ANZ is still considering cutting small business rates.