Talk Around Town

Whew!! It looks like Australia has scraped through the financial mess without going into a technical recession. Time will tell if we come out of the other side unscathed completely.

The good news is that the ‘experts’ are starting to see ‘green shoots’ in the economy – a new term but meant to demonstrate the beginnings of growth in the markets.

On the interest rate front, the economists are starting to predict movements in interest rates out a little further – the general consensus is that interest rates will stay close to where they are now until the second half of 2010 – when they expect the rates to move upwards.

A recent study carried out by East Partners in the way in which Banks are treating Small & Medium sized businesses (SME’s) – showed the following;

SMEs are reporting frustration, and declining levels of satisfaction in their dealings with banks, with “the high cost of credit and the lack of dedicated managers assigned to look after them” as their two biggest concerns.

Our experience in the past few months certainly reflects that statement to be true – we are seeing a large influx of transactions between $3m – $10m for new clients that have been referred to our company.

Due to our large access to lenders on our panel, we are able to satisfy the client’s needs for finance of this size and put additional funding lines (credit limits) in place to satisfy future requirements over the next 6-12 months.

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