Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Access to finance proves challenging for exporters

Access to finance proves challenging for exporters

A new survey has highlighted important financing challenges facing Australia’s internationally active businesses.

The Australian International Business Survey 2015 found that a third of respondents sought additional funding from a financial institution in the last three years to expand their international operations, with 34 per cent failing in their attempt to secure additional funding.

For small international businesses (those with a turnover of below $1 million), the share of unsuccessful funding attempts rose to 46 per cent.

Advertisement
Advertisement

The most common reason for failed funding attempts was security issues (45 per cent), followed by the lender declining the application due to inadequate cash flow (21 per cent), and the respondent withdrawing their application due to the lender’s poor understanding of the transaction (15 per cent).

The survey also found that 45 per cent of respondents found it harder to source debt finance for international business opportunities than for domestic opportunities, while just six per cent found it easier.

The main reasons cited for this greater difficulty included a lack of business size (28 per cent), the unwillingness of a bank to lend for overseas business (27 per cent), and a lack of finances or security for loans (23 per cent).

Furthermore, 86 per cent of survey respondents said retained earnings are an important source of finance for domestic operations that service export sales. This is more than twice the amount of exporters who said domestic banks are important, while just 10 per cent of exporters considered overseas banks important.

Access to finance proves challenging for exporters
mortgagebusiness

 

Latest News

The Australian Securities and Investments Commission has commenced a court case against NAB over allegations that 16 bankers accepted loan i...

The CEO of an ASX-listed mortgage business has seen demand for housing loans “rise significantly” in response to the recent shift in sen...

The non-major has reduced variable and fixed rates across its owner-occupied and investment home loan products. ...

FROM THE WEB
podcast

LATEST PODCAST: Acquisitions and evolution

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.