Coalition failing SMEs on credit

Over 70% of small business owners feel the Government is having little or no impact on improving credit flow to SMEs, despite the last quarter showing a marginal decline in loan refusal levels.

The latest quarterly bank lending survey from small firms lobby group, Isme shows that demand among SMEs for lending edged up from 36% to 37% in the past three months, with an improvement also evident in approval rates.

According to the new survey, 50% of small firms applying for funding (a mix of term loans, overdrafts and alterations to existing facilities) during the last three months were refused credit by their banks. Although still high, it marks an 8% drop on the preceding quarter.