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Where do Australian Small Businesses Source Their Financing?

Where do Australian Small Businesses Source Their Financing? Following the Global Financial Crisis in 2007-8 Australian small business owners moved away from the big banks. But data from the 2014 Australian Small Business White Paper shows them slowly returning Sources of External Finance* 85 Banks 55 54 53 50 Personal Resources Non Bank Financial Institutions 30 Friends or 18 Family 13 13 10 3 Other 2005 2010 2011 2012 2013 2005* Today* 85% used a bank as a source of finance 65% use a bank as a source of finance 30% used a non-bank financial institution 9% use a non-bank financial institution Only 8% used friends or family as a source of finance 13% use friends or family as a source of finance Popular Forms of Financing* 71% Use Credit 28% Use Overdrafts 31% Use Leasing Cards Other Key Points In Australia, banks (including credit cards) are the major source of external financing followed by personal sources, friends and family and sale of other assets. Non-bank financial institutions also play an important role. However, unlike other developed economies such as the US and the UK, the roles of business angel investors and non-bank financial institutions are not significant in Australia. *All statistics were sourced from: The Institute of Public Accountants, Australian Small Business White Paper, 2014, pp. 18-22

Where do Australian Small Businesses Source Their Financing?

shared by AddCash on Sep 18
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After some tough years following the 2007-8 global financial crisis, when small business owners were tapping into credit cards, personal loans and even their home loans for financing, it appears that ...

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