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Small businesses unhappy with banks

Small_Business_w300Small businesses are increasingly unhappy with their bank, while concerns over rising interest rates are felt more by the big end of town, according to market researcher DBM Consultants.

As reported by AAP, DBM’s latest monthly survey of 6951 business customers found satisfaction levels with the big four banks showed a growing gap between small and large businesses in the three months to May, primarily due to concerns over fees.

Businesses with turnover of up to $1 million, and small businesses with turnover of between $1 million and $5 million, were more negative toward their main financial provider over fees and interest rates, while attitudes to fees and interest charges among larger businesses had not changed as much over the past three months.

With small business forming 90 per cent of Australia’s two million businesses and having no need for serious borrowings, most concern over rising interest rates remained with the top end of town, a DBM spokesperson said.

Medium sized businesses that relied on borrowing had been the hardest hit, with most reporting access to finance as more difficult than 12 months ago. Banks were a lot more careful about lending money if businesses wanted to set up new loans, but less stringent about existing loans, the spokesperson said.

Across all business segments, Commonwealth Bank (CBA) had the highest satisfaction rating, while the previous number one, ANZ Banking Group, lost ground, while National Australia Bank had the lowest ranking.

 

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