Independent research commissioned by Scottish Pacific has revealed further negative consequences from the royal commission and the lender’s
CEO is calling on the government to reconsider the proposed changes to broker remuneration.
Examining the impact on SMEs, Scottish Pacific polled 1,257 small business owners and senior managers across Australia between November 2018 and late January, asking them to comment on how lending conditions changed over the commission’s hearings.
The tightened lending conditions that emerged over the course of last year led 22% to experience difficulties when securing funding. Further, 33.7% expect funding will be harder to access in the future.
“The easier it is for SMEs to get funds, the stronger the Australian economy will grow,” said Scottish Pacific CEO Peter Langham.
“Given recent economic forecasts, all the more reason that governments and the business community must prioritise making it easier, not more difficult, for SMEs to access funds,” he added.
The poll also asked SMEs if they had found it easier to access funding since February last year, when the first round of hearings commenced. Generating a unanimous “no”, the question received zero positive responses.
“This is also a key reason why the Federal Government should reconsider the broker fee changes recommended by the royal commission,” said Langham.
“Good brokers play a vital role by helping time-poor business owners find the right product and provider that best suits their needs, allowing the business and the economy to grow,” he said.
