No doubt you’ve had other busy week. We thought that you would appreciate a quick update on the fundamental issues and developments in the market for business credit. Please click on the links below to read more.
According to a recent Morgan Stanley report, the market for alternative finance in Australia is on track to grow to over $95 billion and is changing at a rapid pace. Our confidential, flexible working capital product is unique in Australia and we are seeing very strong demand from growing businesses.
This report is based on a survey of over 500 alternative finance platforms in 17 Asia Pacific countries and regions, capturing an estimated 70 percent of the visible market. As the first comprehensive studyof the Asia-Pacific online alternative finance market, this research contributes to the growing body of data supporting the region's potential.
In Australia many ambitious businesses can’t reach their potential because banks won’t fund them without real estate backing. Where do you go if you have no more equity in your house?
The amount of tax that is overdue continues to rise. Over $35bn is in arrears and small-medium sized businesses owe most of it.
In 2014–15, the ATO granted over 800,000 payment plans.
When comparing offers of finance as a business owner, it is very difficult to understand the true cost of the product. Unlike consumer finance, there is no requirement to disclose comparable rates and few know how to calculate one.
As is the case overseas, invoice finance in Australia falls under asset based financing, which is not currently an activity regulated by ASIC (Class Order [CO 04/239]). We would welcome regulation but you cannot choose to be regulated, as our regulatory advisers have pointed out.
In 2008, the Council of Australian Governments (COAG) agreed to a two phase reform process for the regulation of credit and that in Phase Two the Commonwealth would consider the need to change the definition of regulated credit, and to address practices and forms of contracts that were not subject to the Credit Act.
Over 300 attendees packed Sydney's Doltone House for the inaugural AltFi Australasian Summit, to hear from a range of local and international speakers about the future of this exciting new space.