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There has been a dramatic fall in the growth of business credit, according to new research from Veda.
According to Veda’s quarterly index, business credit demand recorded a 2.8 per cent growth during the last financial year, following 17.8 per cent growth in 2012/2013.
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Business credit demand remained flat in the June 2014 quarter, with a rise of just 0.5 per cent. This was reflected by a 4.9 per cent drop in asset finance, together with an 0.3 per cent increase in trade credit applications and a 4.9 per cent growth in business loans.
Veda’s general manager of commercial credit, Moses Samaha, said that while overall conditions are flat, it is important to put these results in context with the boom in business credit demand during the June quarter last year.
“The June quarter 2013 was especially strong last year, which has contributed to the decline in asset finance figures this quarter, amongst the pressure from the mining states’ investment in large projects easing,” she said.
“In light of last year’s peak, even though business credit demand only reported a moderate rise, the overall business outlook is still positive.”
[Related: Credit demand went backwards in 2013/2014]
