Shutters fall on more than Melbourne society
Credit bureau Equifax has seen a 17.8 per cent fall in trade credit applications during the June quarter, compared with the same period last year, which it says is an indicator of a sharp fall in business-to-business interaction.
Equifax’s latest report on business credit demand also shows a 7.5 per cent fall in overall business credit applications and a 6.7 per cent fall in asset finance applications.
Equifax’s data is drawn from credit application inquiries that credit providers put through its commercial bureau.
Equifax executive general manager customer and solutions, Moses Samaha, said the drop was due to a combination of both falling demand for credit and tighter supply.
Samaha said: “When I talk to the heads of business banks they are concerned about future risk and the viability of small businesses. They are very nervous about certain sectors, and that is widening to include areas like agribusiness.
“But the banks also have businesses to run and they are working with the government to help small business.”
Samaha said small businesses appeared to be more reluctant to take on debt than big businesses.
“They are also the ones the banks are most worried about,” he said.
Victoria and Western Australia had the biggest falls in credit demand – down 11.1 percent and 11.9 per cent respectively. Business credit demand was down just 1.2 per cent in Queensland.