Small Business Funding: The Big Four and the Big Squeeze

Is the worst yet to come for smaller – 20 and under employee – businesses as they seek funding support from Australia’s risk-averse Big Four banks? In the wake of the financial crisis, the increasing power of the Big Four – underpinned by the government deposit and wholesale funding guarantees – has caused other lenders to be squeezed out. The cost and the terms for credit are predicted to become even tougher for small business this year. Business owners are being urged to “get their houses in order” so they can make a strong case for bank funding when markets recover.