Banks and Small Business

The banks enjoy the Federal Government's Guarantee and yet are unwilling to pass the latest official interest rate cut to their customers. The Reserve Bank has reduced the official interest rates by a total of 4.25% in recent times. Most banks have not fully passed these cuts to their business customers. On top of this, they have tightened the financial reporting requirements from most customers as well as lending criteria. The new compliance requirements are a heavy cost burden to small business clients.
as a result, many viable small business clients are suffering from lack of funding. This is inhibiting their potential growth and expansion.
The late Kerry Packer was right on the spot when he was asked (paraphrasing) what good financial management meant! ....(paraphrasing)..: being able to call your bank manager, tell him to get stuffed!, and still have a good relationship with the bank the nest day!".
Regrettably, for most of us that is only a dream!