Business loans getting harder to find

Business is likely to find getting a loan much harder in 2012 thanks to debt problems in Europe impacting on local lenders.

Accounting consultancy Mercer warns corporations are “unlikely to be immune from credit scarcity”. But the trend of lending by non-bank institutions is picking up pace as global banks became less generous with credit, Mercer’s analysts say.

Mercer spokesman Nick White said: “The cost of finance will become more expensive, even for Australian banks, it’s difficult to see how Australian banks would be immune … there’s still significant tail risk.”

Source: Herald Sun