Senate investigates small business credit concerns

The Australian has reported that the Coalition has initiated a Senate inquiry into the barriers to credit faced by small businesses. The main questions to be addressed are costs, terms and availability of finance, as well as whether steps could be taken to increase credit to the sector.

The inquiry follows a report by the Council of Small Business of Australia (COSBOA) which found 75% of respondents were concerned about the cost of finance.

COSBOA Chief Executive Jaye Radisich said the results of the survey were consistent with member feedback over the past few months.

"The cost and availability of credit and finance has been a top issue for COSBOA and small
businesses in recent times - it is patently clear that more has to be done to support small businesses in this area," he said.

"Small businesses need to be able to access affordable lines of credit to ensure that they can
properly manage their businesses, maintain and upgrade their plant and equipment, and provide a productive, safe workplace for their employees."

The government inquiry will also examine the effect of government bank guarantees' impact on commercial lending.

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