NAB’s commitment to regional Australian businesses and the brokers who service them

In agribusiness industries, a combination of ideal growing conditions and high prices for major commodities such as beef, wheat and lamb have lifted producer confidence to record highs¹. The $66.3 billion agribusiness sector is on track to meet its ambitious target of becoming a $100 billion industry by 2030. 

The mining industry, significant in so many regional areas, has also benefited from rising commodity prices. Reserve Bank of Australia data shows spot prices for bulk commodities – iron ore, coking coal, thermal coal and LNG – were up 67.4 per cent over the year to July². Mining investment is forecast to continue to increase steadily over the coming years. 

The pandemic has dampened some parts of the tourism industry, but domestic tourism to the regions remains strong overall. In Broome, for example, tourist numbers have soared. A survey in April by the Broome Chamber of Commerce and Industry found 71 per cent of small businesses in that area were looking to recruit workers³.

Home prices in regional Australia have risen, with lock downs in the capitals encouraging city-dwellers to migrate to rural and coastal areas for lifestyle reasons. In the year to June, home prices in regional NSW were up 21.1%, CoreLogic’s data shows. Regional housing markets rose in Tasmania by 20.8%, in South Australia by 17.1% and in Victoria by 15.9%.

Buoyant conditions in regional economies are creating opportunities for small businesses to invest and expand. To support their growth, small businesses need quick and simple access to capital – no matter where they are located.

Local support to expand your relationship with small business clients 

As Australia’s largest business and agribusiness lender⁴, NAB is committed to supporting regional small businesses. NAB lends $1 in every $3 to agribusinesses# and we have a 160-year history of helping regional enterprises to grow.

Our heritage means we understand regional Australia. Each area is different and every sector presents its own opportunities and challenges. Small businesses and their brokers need specialised support from locals who really understand them.

That’s why we have expanded our network to 650 regional and agribusiness bankers in 120 regional locations, and 134 small business bankers in 60 locations. Now, businesses from Mount Barker in South Australia to Broome in the Kimberley have access to locals who know their community and their business. These bankers are experts in agribusiness, health, professional services, and more, and can offer small businesses with access to specialist capabilities like equipment and trade finance.

By empowering our bankers, we are supporting brokers in regional areas to forge deeper relationships with customers by helping them to manage both their home and small business lending through the one institution. 

Fast, flexible access to finance

Customers’ businesses are evolving and so are their banking needs. We have responded by launching a range of enhancements to speed up and simplify lending for commercial brokers and small businesses⁵.

We’re also seeing small businesspeople take advantage of NAB’s new Secure Lend application process, where eligible small businesses can borrow up to $2m by digitally self-declare their business financials.⁶ Additionally, eligible small business customers only need to provide one year of financial information and can take advantage of increased loan to value ratios, with business loans secured up to 80% by commercial property value or up to 100% by residential property value⁷.

We have also extended our maximum business loan term to up to 30 years, allowing eligible small businesses to maximise their use of capital, take a longer-term view when financing assets, and keep more cashflow for funding business growth initiatives. Traditionally, business loans have been offered for terms of up to 15 years.

With you in good times and bad

By employing industry specialists who understand the specific needs of small businesses in regional areas, we can support brokers and business owners in their successes but also in more challenging times, such as drought, floods, and now COVID-19.

The pandemic has affected many people and businesses across the country. We know things can be tough and want to remind you that we’re here and ready to support those who need it – whether that be your clients or yourself.

¹https://business.nab.com.au/making-hay-how-the-agri-sector-is-looking-to-the-future-46980/

²https://www.rba.gov.au/statistics/frequency/commodity-prices/2021/icp-0721.html

³https://broomechamber.com.au/survey-results-west-kimberley-labour-snapshot/

⁴NAB is Australia’s largest business lender according to Monthly Banking Statistics lending data (non-financial corporations) published by the Australian Prudential Regulation Authority as at June 2021

⁵The fast-tracked application process is only available for new lending of up to $2m on a new NAB Business Options Loan (includes refinance from other financial institutions and new lending to existing customers). There is no guarantee that an application will follow the fast-tracked application process. Your Applications application may follow a slower process if, for example, an application is complex, your customer operates in a high-risk industry or, as part of the application, NAB requires you to provide additional information. Applications for credit are subject to NAB’s credit approval criteria. Terms and conditions and eligibility and lending criteria apply to all NAB products and are available upon request. Fees and charges are payable.

⁶Applications for credit are subject to NAB’s credit approval criteria. Terms and conditions and eligibility and lending criteria apply to all NAB products and are available upon request. Fees and charges are payable

⁷Not available for certain industries, loan purposes, transaction and security types including commercial property investment or development security (owner occupied allowed); Self-Managed Superannuation Fund and Land Banking; Rural property freehold; and Clearing ATO arrears. Certain restrictions apply to Home Lending as a joint application.

'NAB lends $1 in $3 to agribusinesses according market share data calculated using NAB lending volumes and lending data published by the Reserve Bank of Australia (Statistical Tables | RBA) as at 12 August 2021.

We're committed to supporting brokers with one place for home and business lending.

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Written by NAB

Last Updated: 16 March 2022

Published: 21 October 2021