The financial and mental health toll on punch drunk small business owners is becoming intolerable. There is only so much they can bare.

The financial and mental health toll on punch drunk small business owners is becoming intolerable. There is only so much they can bare.

This time last year pundits, myself included, were convinced tens of thousands of small businesses would fall off an insolvency cliff once government support was wound back. But it did not happen and as mind boggling as it may seem, personal and business insolvencies are both down by around 50 per cent. Nearly all businesses that took […]

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theBankDoctor turns Whistleblower on NAB

theBankDoctor turns Whistleblower on NAB

Every now and then something happens in our lives that challenges us to take a stand. This happened to me in 2018 when out of the blue I received a phone call from Roly Newman, a former client who I had not seen since my days at Bank of New Zealand (BNZ) some thirty years […]

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Vale Frank Costa AO

Vale Frank Costa AO

Frank Costa was the embodiment of traditional family values, for him family was everything. At the same time he was a business leader way ahead of his time. He practiced values based leadership long before it became a fashionable management buzz word. Likewise was his mantra of “Hire for character, train for skill”. Frank could […]

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Will SMEs seek to borrow in 2021 & will banks be prepared to lend? And what role should government play?

Will SMEs seek to borrow in 2021 & will banks be prepared to lend? And what role should government play?

According to the RBA, lending to SMEs remains flat and demand by SMEs for credit is subdued.This is despite record low interest rates which the RBA says it won’t be looking to increase until 2024. So why aren’t more small businesses taking advantage of these rates? Will banks increase their lending. And what role can […]

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Capping the rate on Coronavirus SME loans makes no sense at all.

Capping the rate on Coronavirus SME loans makes no sense at all.

The Government will cap the rate of interest lenders can charge on loans under the Coronavirus SME Guarantee Scheme (SMEG) noting that the move “will prevent interest rate gouging”. Talk about throwing the baby out with the bath water! SMEG has been ineffective in allowing quick access to funding for small businesses that don’t have […]

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The Government is barking up the wrong tree with SME loan scheme “enhancements”

The Government is barking up the wrong tree with SME loan scheme “enhancements”

After three months, just 4 per cent of the $40b available under this scheme has found its way into the hands of SMEs. Recognising this the Government has decided on three enhancements. 1. The term of guaranteed loans can be increased from three to five years. 2. SMEs can now borrow up to $1m from […]

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The Commonwealth should buy Judo Bank.

The Commonwealth should buy Judo Bank.

As a nation we cannot continue to rely on privately owned banks to achieve public outcomes like supporting the vital SME sector. When push comes to shove, banks will always act in the best interests of their shareholders – and so they should. What we need is a government owned SME bank that can improve […]

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The COVID-19 economic crisis shows we need a better way to fund  SMEs.

The COVID-19 economic crisis shows we need a better way to fund SMEs.

Many small business owners are already in dire financial straits and sadly it will get worse when the life support provided by JobKeeper and bank forbearance is turned off in September. The Covid-19 economic crisis has highlighted deficiencies in the way SMEs are able to access debt finance primarily through the big four banks. This […]

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The $90b Term Funding Facility for SMEs is a litmus test for the big banks.

The $90b Term Funding Facility for SMEs is a litmus test for the big banks.

The TFF is a timely and essential initiative that could be the key to helping thousands of small businesses avoid bankruptcy. The Government is putting a huge amount a faith in the banks’ ability and willingness to step up to the plate. They can’t compel them to lend but by providing the TFF they have […]

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The Government must act now to avert the collapse of small businesses.

The Government must act now to avert the collapse of small businesses.

Tens of thousands of small businesses are facing imminent collapse as revenues tank and they run out of cash. Urgent action is required to avert the disastrous consequences which will follow. Sensible government intervention like travel bans should flatten the coronavirus curve but we need to also need to flatten the curve of small business […]

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