Business
Instant credit might be better bet for small business – The Australian Financial Review
The Morrison government is extending a subsidised credit scheme for SMBs despite lack of interest from borrowers. Fintech is instead banking on the idea it can provide more targeted assistance.
The risks of taking on more debt in a recession were already obvious to most viable businesses under financial pressure, while banks have made it clear they dont want to extend further credit to businesses that are not.
The result has been extremely modest take-up of the original $40 billion government guarantee of 50 per cent for new unsecured bank loans to SMEs for up to three years’ worth of working capital. Around 15,600 businesses have made use of these loans, with Frydenberg arguing this …
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