Business loan approval times âblown to bitsâ
May 19, 2021 â 11.56am
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Business owners are being forced to wait weeks for loan applications to be turned around as bottlenecks in the approvals process threaten to limit the supply of credit crucial to the recovery.
Brokers, borrowers and small lenders say delays in loan approvals at the big banks are not restricted to the mortgage market and are only now beginning to show signs of improvement after blowing out during the virus crisis.
Approvals for upwards of $1 million of asset finance has risen from a week to three weeks with some banks telling customers they must submit paperwork before June 15 if they want to qualify for the instant asset write-off in the financial year ending June 30.
RLO repeal would reduce ‘policy creep’: CAFBA
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As politicians debate the bill to repeal responsible lending, CAFBA has said that repealing the obligations would help reduce any “grey area” when it comes to commercial lending.
On Monday (15 March), the National Consumer Credit Protection Amendment (Supporting Economic Recovery) Bill 2020 – which focuses on amending the credit laws so that they remove responsible lending obligations (RLOs) and extend the best interests duty to more credit assistance providers, among other changes – was debated in Parliament during its second and third reading.
During the debates, which extended into the evening, several Labor MPs suggested that the changes the bill is proposing would negatively impact business lending.
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NAB’s monthly business survey shows trading conditions around Australia returning to long-term average levels, but Victorian firms are still shaking off the effects of COVID-19 shutdowns.