Veda Advantage’s Business Credit Demand Index, released today, shows many small-to-medium sized businesses have been reluctant to take on credit throughout 2010, with demand falling 5.6% in the April to June period over the same quarter in 2009. Monthly analysis of Veda Advantage’s commercial credit bureau saw business credit demand drop by 4.4% in April, 1.3% in May and 10% in June year-on-year. June experienced the largest drop in credit demand in six months. Hamish Osborn, Head of Commercial Risk Products at Veda Advantage, said the small-to-medium business credit market remains volatile, with weak year-on-year credit growth in the June quarter despite the 2009/10 financial year up 2.4% higher than in 2008/09.
These latest results show business credit demand is 9.8% below the April to June quarter 2007 and 6.1% down on the same quarter (April to June) 2008. Source: Veda Advantage