Demand for asset finance spikes: Equifax
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A rebound in asset finance demand has halted the overall decline in business credit demand, but business loan applications have declined, Equifax data has shown.
Figures from the data analytics and credit reporting company have shown that business credit demand has returned to the same level as the March 2020 pre-pandemic quarter before the pandemic border closures and lockdown measures.
Equifax’s Quarterly Business Credit Demand Index for March 2021 – which measures the volume of credit applications for trade credit, business loans and asset finance – revealed that the recovery in business credit demand was driven by a bounceback in asset finance, which was up 8.9 per cent in the March 2021 quarter, compared with the March 2020 quarter.
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Equifax’s Quarterly Business Credit Demand Index for the December 2020 quarter has revealed that business credit demand has continued to decline year-on-year, but the rate of decline had eased in the December 2020 quarter amid signs of a bounceback in Victoria.
According to the data and analytics company, overall business credit applications had declined by 6.9 per cent in the December 2020 quarter compared with the December 2019 quarter, while business loan applications had slumped by 10.1 per cent, and trade credit applications had fallen by 8.4 per cent.