- Overall business credit demand remained flat with an increase of 0.5% for the June quarter 2014 (vs. June quarter 2013)
- Decline in asset finance following peak in June quarter 2013
- Growth in business loan applications particularly across Australia’s Eastern seaboard states for the June quarter 2014
The Veda Quarterly Business Credit Demand Index, measuring applications for business loans, trade credit and asset finance expanded 0.5% in the June quarter 2014.
This increase is reflected in a drop in asset finance (-4.9%), offset by a small increase in trade credit applications (+0.3%) and a rise in business loans (+4.9%).
Veda’s General Manager Commercial Credit, Moses Samaha, said: “While overall conditions are flat, it’s important to put these results in the context of a boom in business credit demand in the June quarter 2013, where business loan demand grew almost 10% and asset finance by approximately 6%.
This time last year we saw the market for SME lending kick start which stimulated activity across the market materially. There was also acceleration in autofinance activity in anticipation of some tax treatments on leasing by the prior government.
“In light of last year’s peak, even though business credit demand only reported a moderate rise, the overall business outlook is still positive,” said Mr Samaha.
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