Small business rate drop
Brokers have contributed to small business rates dropping to their lowest point since 1993 when the Reserve Bank of Australia (RBA) initially started keeping records. According to the RBA, the increased use of brokers may have boosted the price competition in certain areas of the small business loans market.
According to the data, the current average interest rate for small business loans is sitting at 5.3 per cent which is significantly lower than the 2011 average which was 8.40 per cent. This sums up to a saving of $9 billion dollars on current loans when compared to the same time in 2011 which is great news for today’s small business owners in Australia.
How can this benefit my business?
The money saved, through low-interest rates, presents new opportunities for small businesses such as the chance to pay off debts sooner, reinvesting for business growth, or putting it away as a safety buffer for any unexpected changes in the future.
More and more people are turning to brokers for loans as they have the ability to compare 100’s of loans from different lenders, as well as having strong negotiation powers. As a result, banks and lenders are offering more competitive prices in a bid to win their business.
If you’re a small business owner in need of credit advice, contact us today and we can organise a consultation at no cost to you. Otherwise, there’s the option to find a broker in your local area to discuss your options with.
Disclaimer: The information provided in this article is not legal or financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the recommendations, having regard to your own objectives, financial situation and needs. We encourage you to consult a finance professional before acting on any suggestions provided in this article or on this website.