Australian business loans up again in December

Peter Terlato 14 February 2017 NEWS

business loan agreement handshake

Commitments keep rising through the summer.

The value of commercial finance commitments rose modestly in December, as did revolving credit.

The Australian Bureau of Statistics (ABS) released its latest lending finance data, reporting a 2.3% month-on-month hike in total commercial commitments.

Commitments have been steadily gaining steam since September, following nine straight months of falls.

Prior to this, commitments had not risen since November 2015, as can be seen in the infographic below.

Following strong growth in November, revolving credit commitments rose 1.6% in December.

Revolving loan facilities allow businesses to borrow money as needed to fund working capital needs and maintain operations. Drawing against the loan brings down the available balance, whereas making payments on the debt brings up the available balance.

Fixed lending commitments rose a steady 2.4% month-on-month in December.

The value of housing finance for owner occupation rose slightly (0.2%), while personal finance (0.7%) increased and lease finance jumped higher (0.1%).

There are many challenges small businesses in Australia must face, whether just starting or established. A new government issue paper highlights one of the most formidable - late payments.

Discover how to kick-start your business or take the next step using our comprehensive comparisons guide. Alternatively, if you've got bad credit, compare lenders which specialise in these types of loans.

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