Probe into credit access

CREDIT: The squeeze on small businesses access to credit will be the subject of a Senate inquiry initiated by the Coalition yesterday.

The inquiry will investigate the costs, terms and availability of finance for small businesses and whether steps could be taken to ensure a freer flow of credit to the sector.

The launch of the inquiry follows a survey by the Council of Small Business of Australia that found that access to finance was the No 1 concern for small and medium-sized businesses as the economy emerged from the global financial downturn.

Opposition spokesman on small business Bruce Billson said: “Almost without exception, small business operators and their peak advocacy bodies are sharing stories of small businesses facing higher costs and charges and sudden re-risk rating requiring them to provide greater security for their loans. If small business is to play its part in driving economic recovery and jobs growth, timely access to finance on reasonable terms is an important pre-condition.”

The inquiry will also look at government bank guarantees’ impact on commercial lending.