With heightened risk in the construction sector, lenders are continuing to exercise greater caution, meticulously evaluating every aspect of a project before committing resources. Given the critical role of investment and finance in real estate and property development, a lack of funding or excessive cost-of-capital could spell doom for construction projects before they even clear the approval stage.
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Treasurer Frydenberg’s announcement on 25 September is about simplifying Australia’s credit framework. As part of the proposed changes, APRA becomes the key regulator for home and personal lending with the intent of removing duplication by two regulators and freeing up the flow of credit, to help kick-start economic recovery.
Queensland hardest hit in first wave lockdown with 9 of top 10 Mortgage Deferral hotspots.
COVID-19 has fast-tracked existing shifts in Australian consumer retail behaviour, promising to change the marketing, distribution and selling of automobiles forever.
Auto retailers need to adapt now to a new reality because businesses waiting for stabilisation are taking a considerable risk, said KPMG National Leader of Motor Industry Services, Steven Bragg. Speaking at the recent Equifax Automotive Finance Forum, Mr Bragg said the auto industry was in crisis and in need of transformation before the pandemic even came along.
If you have volunteers working for your organisation, the responsibility lies with you to find out if their Working With Children Check has been suspended or revoked.
Without a process in place for verifying and monitoring your volunteers’ Working With Children Check, you may not have up-to-date information on their clearance status. A volunteer may have had their check clearance denied, yet this could go unnoticed.
Equifax Quarterly Consumer Credit Demand Index: June 2020
Overall consumer credit applications down -38.8% (vs June quarter 2019) Credit card applications dropped significantly by -45.4% (vs June quarter 2019) Personal loan applications dropped -33.5% (vs June quarter 2019) Buy now pay later applications reduced -7.3% (vs June quarter 2019) Auto loan applications down -13.7% (vs June quarter 2019) Mortgage applications increased by +7.6% (vs June quarter 2019).
Equifax Quarterly Business Credit Demand Index: June 2020
Overall business credit applications down -7.53% (vs June quarter 2019) Business loan applications decreased by -4.11% (vs June quarter 2019) Trade credit applications fell -17.82% (vs June quarter 2019) Asset finance applications declined -6.72% (vs June quarter 2019).
It’s a well-known fact that registering on the Personal Property Securities Register (PPSR) boosts your rights when faced with customer insolvency. It’s a lesser-known fact that it’s equally useful when a customer wants to sell their business.
Equifax has been monitoring the impact of government stimulus on commercial SME lending, as well as tracking trade payments to determine the impact of COVID-19.
If one of your customers goes bust and you’re not a secured creditor, expect to lose out. There’s a world of difference between registering on the Personal Property Securities Register (PPSR) to become a secured creditor or remaining unsecured by not registering.
When a business goes into insolvency, there’s an order by which creditors are paid. Secured creditors take precedent, along with the insolvency practitioner, who receives a fee for managing the process. To be a secured creditor, you must have successfully registered your security interests in equipment and goods (‘personal property’) that you’ve sold on terms or leased to the customer. This registration happens on a national online noticeboard known as the Personal Property Securities Register (PPSR).
