The recent announcement of a $2 billion securitisation fund and progress to establish an Australian Growth Fund have been labelled as the “biggest structural reforms to small business finance we have seen”.
In response to the government’s plan to boost access to affordable capital for SMEs by addressing cost constraints for smaller lenders, Professor Andrew Conway – head of the Institute of Public Accountants (IPA) – said that both measures combined “will have long-term impacts on the viability of the small business community”.
“We welcome and congratulate the Australian government for the creation of a $2 billion Australian Business Securitisation Fund, which will provide incentive and capacity to smaller banks and non-bank lenders to free capital up and lend to more small businesses. This will give those small businesses the confidence to grow and employ,” he said.
According to Professor Conway, the measure was proposed as part of research conducted by the IPA Deakin SME Research Centre, a joint venture between the IPA and Deakin University.
The centre earlier this year launched the Australian Small Business White Paper, which made a number of recommendations to address the chronic low productivity and high taxes that are curbing growth for small and medium-sized businesses.
My Business is keen to hear your thoughts on whether you believe the securitisation fund, which will boost the amount of money smaller SME lenders and non-banks have available to lend, and do so at a more competitive cost, will make accessing finance cheaper and easier for your business – you can do so here.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
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