ANZ pledges $1 billion shot in arm to small businesses over next year
Small business operators have hailed the bank's move as a deserved mark of respect for small business start-ups, although questions linger about whether they will take the assistance being offered.
Dean Ramler, founder and CEO of furniture business Milan Direct, said banks should treat small businesses with respect "from day one".
"When we started Milan Direct six years ago, I literally walked down the street and got knocked back by the first three banks I approached - they all laughed at us and didn't take us seriously," he said. "The fourth bank, which did take us seriously, today has the business of a $20 million company. So it would be nice to see banks treat start-ups and small businesses with respect."
With credit growth decelerating across the economy, banks are keen to encourage a rebound in small business borrowing.
The total value of newly approved loans of less than $100,000 fell to $2.6 billion in the December quarter, down from $3 billion, Reserve Bank figures show.
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ANZ pledged to lend $1 billion to new small businesses over the next year, launching what the article describes as a new battleground in small business banking.
The article notes credit growth is decelerating across the economy, so banks are keen to encourage a rebound in small business borrowing — which is one reason ANZ has made its $1 billion lending pledge.
Reserve Bank figures showed the total value of newly approved loans under $100,000 fell to $2.6 billion in the December quarter, down from $3 billion in the previous quarter.
Small business operators generally welcomed the move as a deserved mark of respect for start-ups, though the article says questions remain about whether businesses will actually take up the assistance on offer.
Dean Ramler, founder and CEO of Milan Direct, said banks should treat small businesses with respect from day one. He recalled being knocked back by the first three banks he approached when starting his business, while a fourth bank that did support them helped the company grow to a $20 million business.
No definitive answer is given. The article states that while operators hailed the pledge, questions linger about whether small businesses will take up the assistance being offered.
The phrase refers to heightened competition among banks to win small business customers, with ANZ’s $1 billion pledge positioned as a strategic push into that competitive area of banking.
The article highlights three clear facts investors can watch: ANZ has pledged $1 billion to new small businesses over the next year; banks are pursuing small business lending as credit growth slows; and RBA data show a recent decline in newly approved small loans under $100,000 (from $3 billion to $2.6 billion in the December quarter).
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