Over 80% of state SME owners stressed

A new study has found over 80 per cent of small to medium enterprise owners in the state are suffering from stress as a result of cash flow issues.


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Interesting article. Certainly worth re-reading. It's past amazing to reflect on small business and cash flow. Here are a few facts irrespective of what figures show. Primary lenders to SME's would surely be expected to be Banks. Through the so called boom and in fact for the last at least 15 years banks have been totally risk averse. I didn't say they didn't lose money. This they did, but because of their own greed and stupidity.... and the government of the day bailed them out. Nothing wrong with a bailout and nothing wrong with an ulterior motive to protect depositors investments, but control has been left in the hands of the banks who actually have done nothing to polish what could have been a real boom. SME's got loans based on asset value, in the main and nearly exclusively property. Valuation around 80% of market value if you were lucky, and again what appeared to be risk free. Here's a thought. Banks should be compelled to put up 10% of their earnings into a SME fund that matches owners investments dollar for dollar. Even if this is a new scheme. You have the right credentials, you put in x and we match it.....We certainly will give the desperados an opportunity to either line there pockets or keep chasing a dream....and how would our economy be then. 2 billion going into small business and the flow on effect would be sensational. SME's are faced with the same liquidity problems as the banks. Owners assets have been reduced, capital is in short supply and the banks are scared to open up in the morning. It was stated that they are holding on rather possessively to the cash that has come their way. Viable small businesses are going to go to the wall because of liquidity problems. Small business that have impeccable credentials for future growth. Small businesses where owners have got their last dollars on the line.... and guess what... they have no chance because the banks are risk averse. not only risk averse but protected. Hullo.....

Michael, talk about SME's and then you talk about the security Banks lend will on. Do Banks reduce the interest rates on loans as quickly as they do on housing loans? Then by the same margin? Do they offer any assistance to SME's in a cash-flow crisis? Not in the affirmative. Regretfully Banks are parasites that bleed the victim for their own ends. They are in business, as are small businesses, but they do not recognise that. It is their own greed that forces SME's to feel the pinch. They can argue the alternative but working in these financial institutions taught me a lot. God help those that have borrowed. Await the fallout from Allco and other toxic companies, who treated shareholders with disdain, those that required Bank assistance. When the Debentures fall due stand aside as the Banks move in.

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