Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman, has suggested that Commonwealth Bank should raise their lending threshold to $5 million as opposed to the proposed $3 million. The bank however, disagrees with her reasoning. A bank spokes person has related that the majority of their loans, about 95%, are $3 million or lower. The bank relates that this $3 million threshold provides better transparency and certainty for small business owners looking for loans.
Key Takeaways:
- Spokesman for Austrailia Small Business and Family Enterprise feels the small business lending threshold should be increased to $5million
- Spokesman for the Commonwelath Bank is concerned that raising the threshold raises the risk too high for the bank
- Kate Carnell feels there has not been given a legitimate explanation as why the increase is not justifiable
“On the subject of the level of the threshold, CBA stated that over 95 per cent of their small-business customers have loans of $3m or lower, and that the vast majority of their customers, therefore, were covered with the new level of small business lending protection.”
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