Businesses that are struggling to attract new business are using a range of tactics to try to stay afloat, including advertising, marketing, and selling to existing customers, according to a report from the Australian Financial Service Bureau.
The bureau says there were 1.29 million business lending approvals last financial year, a 1.1 per cent increase from the previous financial year.
That was followed by a 2.1 percent increase in business loans, and a 2 per cent jump in business contracts.
The growth was mainly due to the fact that Australia’s growth rate has been rising steadily over the past year, which means businesses that were in the red last year can be hoping for a bumper year this year.
The ABS said the number of business loans and related approvals increased by 2.4 per cent year on year to 7.9 million, while the number business contracts grew by 1.3 per cent to 719,931.
Business loans are available to business owners with up to a total of $2,500.
The report noted there were 859,959 business contracts in the past 12 months, with a total loan-to-value of $5.4 billion.
In contrast, there were just 579,894 business loans available, and 615,941 business contracts, according the report.
The most popular type of business loan is a fixed rate loan, which has a monthly interest rate of 1.25 per cent.
However, the ABS said there were also a variety of types of business contracts that are available, including fixed rate commercial loan (0.75 per cent), fixed rate variable rate loan (1.50 per cent) and variable rate variable interest rate loan with variable interest rates (0-1.25).
The ABS also said there was a rise in the number and type of businesses that advertised to existing clients.
“There has been a rise of business lending, advertising and marketing activities as businesses have become aware of the opportunities and the benefits that are now available,” the ABS reported.
“This is particularly the case with the growing number of commercial lending arrangements for small business owners.”
For small business businesses, this could include advertising, promotional activity, online marketing, promotional activities, or business cards and brochures.
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