Hunter Business Chamber has welcomed the announcement of the Australian Business Securitisation Fund, which is intended to make it easier for small business owners to access finance.
The federal government announced plans last week to create the $2 billion taxpayer-funded scheme to provide an alternative line of credit for small businesses, which often have difficulty securing loans from the big banks.
Chief Executive Officer, Bob Hawes said restricted access to finance was a key barrier to start-up, growth and diversification for many small businesses in the Hunter.
“For many small business owners, mortgaging the family home is the only option for securing additional funding for their business operations,” Bob said.
“Just last week, chamber members heard that very scenario from our business breakfast presenter, Port Stephens-based Bondi Chai owner Melissa Edyvean, who had to refinance her home to get her business up and running.
“It’s a situation that takes start-ups and small business owners down a path known as the valley of death, a cycle of borrowing to cover negative cash flow while enabling the continued growth needed to make a business profitable.
“We are yet to hear the detail of the government’s proposed fund, but we welcome in principle any program that will improve accessibility to finance for SMEs.”
The issue of small business access to finance was first raised by the NSW Business Chamber in its 2013 Thinking Business Report – Small Business Access to Finance.
“This is an issue that we’ve continued to advocate for on behalf of our members to all sides of the political spectrum and it’s pleasing to see it finally being acted upon by the Morrison Government,” Bob said.
“Through the proposed new measure, we hope to see greater access and more affordable finance for small businesses everywhere. This access to finance is so important for future small business growth, sustainability and job creation.”
IMAGE | Bob Hawes with a local business owner.
With more than 1800 members, the Hunter Business Chamber is the largest regional business chamber in Australia and represents the collective interests of a diverse range of sectors across the Region.
The Chamber provides members with a range of services from advocacy and business advice to information and networking opportunities.
Business support is vital in today's economic climate and our primary goal is to assist and represent the needs of businesses in our community.
The Chamber is committed to partnering with all industries in ensuring the ongoing growth and sustainability of the Hunter Region.