Money

Why are business loans on the way up, despite gloomy economy?

There’s a lot of talk of doom and gloom in the economy at the moment, so why are loans to small and medium businesses on the way up?

 
With high inflation and the cost of living and rent going up it definitely feels like the economy is in bad shape at the moment.

More than 7,500 businesses closed in Victoria last financial year, for instance.

However data shows banks lent almost $200 billion across 302,945 new loans to small and medium enterprises last financial year – an almost 30% jump from the previous year.

Why are business loans on the way despite the negative sentiment?

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