Dun & Bradstreet Australia (D&B) has sought to turn the economic debate away from straight bank credit and towards trade credit. The traditional focus on bank credit has resulted in “a view that is skewed to the larger end of town as credit is much easier to access for this group of businesses”, D&B Australia and New Zealand CEO Gareth Jones contends.
Writing in his firm’s just released Insight publication for summer, Gareth Jones says this view ignores the fact that bank credit is only part of the mix for bigger businesses and that trade credit “is often the first source of finance for small businesses, and one they depend on heavily during challenging periods”. He sees ignorance on trade credit issues as hiding the difficulties facing Australian businesses at a time when global long-term growth not expected to resume until 2017.
The full report can be found here.