Australian Chamber of Commerce and Industry chief Kate Carnell pointed to access to capital from the big banks as a hindrance holding small business back. Ms Carnell said big banks were typically requiring mortgage security to be pledged for small business loans or otherwise providing credit cards with high interest rates. Alternative funding sources such as those from crowdfunding and other online lenders must be supported by the government, she told the summit.
Ms Carnell said it was understandable that banks wanted to minimise risk and maximise return on equity but "we went through the National Reform Summit where many comments were made about generating growth and productivity and innovation – which requires entrepreneurs growing and employing. That is all true, but none of it will happen if we have an environment where small business is not able to borrow. It seems like we skirt that issue a bit. The banks say there are no problems, of course they are willing to lend. Well, they are, but only when you can offer them a house."
She called for light touch crowdfunding legislation to be introduced soon. She also encouraged alternative lenders to talk to SMEs about their offerings. Read more: http://www.smh.com.au/business/banking-and-finance/bruce-billson-endorses-disruptive-online-sme-lenders-20150829-gjashm.html?stb=twt#ixzz3lJCpIYrJ