Mid-sized businesses, turning over $5 million to $250 million annually with 50 to 500 employees, are the engine room of our economy. They provide 1 in 4 jobs in Australia and represent our best chance of achieving the Government's Jobs and Growth objectives.
"With a combined annual turnover of around $1.1 trillion, if Australia’s mid-size businesses were a state, their economy would be larger than Queensland" according to Greg Keith, CEO of advisory firm Grant Thornton in releasing their Australian Mid-Sized Business Report 2015.
Our banking system cannot provide businesses with pure working capital funding as they require real estate security as collateral.
The numbers are large. A sector with $1.1 trillion of annual turnover and an average of 51 days of outstanding accounts receivable has $154 billion tied up in outstanding invoices most of the time. To grow revenues at say 10% per annum, the sector needs to find over $15 billion in working capital finance every year.
Where to do you find this without real estate security? In a service-led economy, we need to fix this problem to create Jobs and Growth.