Lowest Small Business Loan Rates in Decades
The Reserve Bank of Australia decided earlier this week to maintain a record low cash rate of 1.5%. The Governor, Philip Lowe described Australia’s economic recovery as “gradual”, indicating the bank is in no rush to raise interest rates from the historic low. Low interest rates make the financing of operations, manufacture and distribution less expensive for companies. Periods of low interest rates can be good times to plan for expansion, due to low costs at that time. Expansion allows companies to hire more people and improve wages, which flows in to consumer confidence… Businesses sell more, and business activity increases! Average small business loans are about 5.3% interest today, compared to about 8.4% in 2011. Australian business are spending about $9 billion less in interest today than 7 years ago (Australian Bankers Assoc). This might be a good time for you to get your finances in order prior to purchasing a business!
