Business applications for loans, trade credit and asset finance all fell heavily during the September quarter, although the numbers aren’t quite so bad if Victoria is taken out of the equation.
Overall business credit applications were down 11.5 per cent in the quarter, which was a bigger year-on-year decline than in the June quarter, credit reporting agency Equifax said.
According to the latest Equifax Quarterly Business Credit Demand Index, business loan applications fell 13.3 per cent compared with the September quarter last year. Excluding the 21.3 fall in applications in Victoria, the average fall in the other states and territories was 9.6 per cent.
Trade credit applications fell 6.5 per cent year-on-year. Excluding the 7.8 per cent fall in Victoria, the average fall in the other states and territories was 6 per cent.
Asset finance applications fell 12 per cent. Excluding Victoria’s 30.7 per cent fall, the average fall was 7.8 per cent.
Equifax executive manager customer and solutions, Moses Samaha, said outcomes have varied considerably across the states and territories.
Samaha said the decline in overall business credit applications was less in the mining states than in the non-mining states.
Against the trend, there was an increase in trade credit applications in Tasmania and increases in asset finance applications in Western Australia and the Australian Capital Territory. Business loan applications increased in the Northern Territory.
Equifax’s index is based on credit applications that go through its commercial bureau.