FINANCE WEEKOct 9, 2020

Nausea, Hope, Endeavour – Another Week In Finance

Economist sickened

High profile economist, Saul Eslake, has told The New Daily that the government’s tax concessions for small business make him want to puke.

Even if you disagree with him it is refreshing to hear an economist speak so plainly.  There is no misunderstanding his thoughts.

Eslake told the publication that the concessions have “done virtually nothing to stimulate employment growth despite the fact people believe with almost religious fervour that small business is the engine room of the economy.

“Like a lot of other religious beliefs, there is absolutely no evidence for it.”

Is it over?

Business owners who’ve found it difficult to borrow funds during the pandemic might be encouraged by news from SME lending platform, Capify.

Like a number of non-bank lenders, the company abandoned business owners in the wake of the Covid-19 crisis.

However, after securing a $14 million equity round, it has signaled an intention to re-enter the market .

In the first signs of renewed optimism, Capify says it is cashed up and rebooting its activities with a focus on brokers and companies with lots of SME customers.

NAB turns on the tap.

NAB is offering small businesses up to $1 million with no repayments in the first six months.

In a response to the impact of Covid 19, the bank’s Group Executive for Business and Private Banking, Andrew Irvine,  said:   “Australia has had our support from the beginning of this pandemic, and we are doing everything we can to support businesses to get through to the other side.”

Businesses with turnover less than $50m are eligible.  The loan term is 5 years.

Unsecured loans will be available at a variable rate of 4.5% p.a.  Secured loans will attract a rate of 3.6% p.a.