Those of us in small business know that gaining access to funding is often one of the biggest difficulties to overcome. Securing business loans against your house or jumping through hoops to obtain unsecured finance with high interest rates and short terms is the norm in Australia. In a joint announcement made 14 November 2018 by the Hon Josh Frydenberg and the Hon Michaelia Cash a $2 billion Australian Business Securitisation Fund will be created to assist small businesses obtain longer term equity funding.
A similar fund was established in the UK in 2011 which has since loaned 2.7 billion to a range of small businesses there. In Australia the funds will be provided to smaller banks and non-bank lenders to then on lend to Australian businesses. Australia’s 3 million small businesses employ around 7 million people. The funds should assist in the growth of these small businesses providing more jobs and growth in Australia’s economy overall.
More details here: Media Release
