The devastating effects of the coronavirus pandemic are being felt around the globe, and governments are announcing big plans to mitigate the economical impact of the outbreak. The latest announcements from the Morrison government could offer an exceptionally bright light at the end of the tunnel for small and medium sized businesses, with the government confirming that the instant asset write-off scheme has been expanded.

Small and medium enterprises in Australia are the engine room of its economy. SME’s roughly employ 4.7 million people, producing one-third of the total GDP. It is an undeniable force that pushes the economy forward. Yet big banks have not supported SME’s much. In fact, the big banks have made it difficult for SME’s to borrow money despite being able to afford to roll out the loans. Apparently, SME’s proud history of boldly accelerating the economy doesn’t mean a thing to these big banking institutions.

When the big bank’s dirty laundry was exposed, instead of wooing SME’s, they ran in the opposite direction. The big banks tightened the noose some more by requiring extensive proof of income and creditworthiness. They have also squeezed the determinants in an SME’s borrowing capacity reducing available credit. SME’s in Australia find themselves in jeopardy of being shut down​

These are the biggest banks in Australia, and they’re called the Big Four – Westpac Banking Corporation, National Australia Bank or NAB, Commonwealth Bank of Australia and Australia and New Zealand Banking Group. They hold the majority of all loans from mortgage borrowers as well as by the value of their total assets.​

Australian banks and large mortgage firms have seen a pronounced decline in borrowing over the past year. Stricter regulations redefined the post-financial crisis landscape, traditional banks have cut back on loans increasing rejection rates. The result? A significant number of borrowers are now working with private lending sources. No B*nk is such a financial source. ​