Business, consumers still scared of debt

The global financial crisis may be over, but it has had a big impact on the way people and businesses spend and think about money.

According to the RBA, business loans and household spending decisions remain subdued a year after the financial crisis wreaked havoc on the global economy and sent sharemarkets plunging

The Reserve Bank of Australia’s assistant governor of economics Philip Lowe said “it appears that one legacy of the global downturn is that many people, despite being generally confident about the future, are taking a more conservative approach to their spending,”

Consumer confidence and business confidence, are both up in recent months. Businesses loans declined 7 per cent last year, he said, hitting a level not seen since the recession of the early 1990s.

If you require finance to grow your business or need alternative solutions because of your bank's strict lending criteria, speak to the mortgage brokers at Intellichoice on 1300 55 10 45 about invoice finance, trade finance or inventory finance.