Judo Bank is a classic gamekeeper turned poacher story involving former big bank executives Joseph Healy and David Hornery taking on their old employers who they say have lost the craft of relationship banking. Having earned its banking licence in 2019, Judo has grown from scratch to a loan book of $3.5 billion. It expects to […]
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 […]
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 […]
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 […]
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 […]
The extensive media coverage of the Royal Commission’s findings contain very few references to the SME sector. This is possibly because the report contains only six recommendations, four of which relate solely to the farming sector. We briefly discuss these recommendations then explain why for the foreseeable future SMEs can expect continued pain before exploring […]
The ABA has just released its new and improved Code of Banking Practice, the fourth version since 1993. But bank behaviour has not improved over this time which lends weight to the view these codes are not worth the paper they are written on. So it would be understandable, but unfortunate, if SMEs thought this […]
Borrowers would be wise to ensure they understand how the changes taking place in the economy & the banking sector in particular will impact on their borrowing arrangements. This piece highlights the main areas of concern, explains how the banks are responding and offers six tips to safeguard your borrowing arrangements. HOUSEHOLD DEBT. At more […]
Take theBankDoctor’s two minute quiz to find out. SMEs are finding it difficult to get bank funding yet banks keep telling us they are keen to lend. So what’s going on? Are the banks being too tough or do small business owners just have unrealistic expectations? Well in fact, both statements are true. There’s no […]
Businesses owners continue to enjoy the benefits of record low interest rates and with some experts predicting the Reserve Bank’s official cash rate could fall to as low as 1.5%, it’s understandable why you might adopt a “do nothing” stance. The RBA could reduce the Cash Rate further in the months ahead but that doesn’t […]
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