Business credit applications sank in the first three months of the financial year, a six per cent drop compared to the same period last year, Veda Advantage yesterday revealed.
Credit applications have now declined every month since December 2007.
Business credit enquiries have also slid, falling 2.6 per cent in July, 6.3 per cent in August and a significant 9.5 per cent in September.
Property mortgage enquiries experienced the largest fall during the quarter of 41 per cent compared to the same time last year.
Veda Advantage CEO Rory Matthews said the results indicated businesses were feeling the impact of current market volatility and were wary of taking on more debt in uncertain economic times.
“Veda Advantage data suggests an increase in business opting for shorter forms of credit such as a 30 day loan, but we have noticed a sharp decline in fixed debt loans such as mortgages,” he said.
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