SMALL businesses in Western Australia are calling for greater competition in the finance sector according to the Small Enterprise Network, a group associated with the Chamber of Commerce and Industry WA.
SEN said a Senate inquiry into competition in Australia’s banking sector had given small business an opportunity to highlight the challenges they faced when attempting to borrow money.
Access to finance and its cost are two of the biggest problems currently facing small business, with many saying they rely on borrowing money to get their businesses off the ground.
SEN, which represents more than 3,000 small businesses across WA, said high borrowing costs and limited choices in lenders were making it harder for small business to access money at prices they could afford in order to take full advantage of the improving economic conditions.
According to SEN, greater competition is the best way to reduce lending costs to business customers.
Currently, the major banks are providing two-thirds of business credit and SEN research showed that 90 per cent of WA’s small businesses have applied for finance from the big four.
“Further regulation of the sector is not the answer. Government policy needs to create incentives that encourage new banks into the market,” SEN said
