A non-major has pledged $3bn of new credit for small and medium sized businesses (SMEs) across Australia.
According to Suncorp, SMEs are a “critical segment” of the economy and the bank intends for its additional credit to help local communities thrive throughout the country.
The bank’s announcement followed the Council of Financial Regulators’ (CFR) move to support maintaining the current borrowing threshold of $3m to define small business within the Banking Code of Practice.
“We have actively campaigned for the retention of the $3m threshold and the CFR’s support of this provides greater certainty enabling us to better support small business owners across Australia to invest in and grow their business,” said Suncorp CEO of banking and wealth David Carter.
Independent research released last month by Scottish Pacific revealed that 22% of SMEs have experienced difficulties securing funding since the first round of royal commission hearings last February, with 33.7% expecting access to only get more challenging in the future.
According to Carter, “Supporting small business across Australia is one of the most important things the bank does because when local businesses succeed, local communities thrive.”
Suncorp will also make lending with less security more accessible with a focus on cash flow providing greater access to bank credit for SMEs.
Looking ahead, Carter said, “The final step in improving access and price of credit for small business and increasing competition is a level playing field around capital allocation between major and regional banks.
“We are proud to support Australian farmers and small business owners. As a non-major bank, Suncorp needs to allocate more capital against these loans.”
