Welcome news for small business borrowers
MINISTER for Small Business Michael McCormack has welcomed National Australia Bank’s introduction of shorter, plain English loan contracts for small business borrowers.
“I am pleased that the National Australia Bank has taken this step to ensure that small businesses looking to invest in their business can now do it in a more straightforward way through loan contracts that are easier to understand,” said Mr McCormack.
“This action taken by the National Australia Bank follows the Carnell Report from April this year which identified that certain contract terms in lending documents posed a significant risk for small businesses looking to borrow money.
“Small business is the engine room of our economy and we are working hard to create the right policy settings to ensure that they can continue to thrive, and simplifying small business lending is a great outcome to achieve this.
“Small businesses do have a responsibility to work out what capital structure works for them but they should be treated fairly regardless, and it is great to see that National Australia Bank has taken this step and I hope more lenders come on board.”
The Turnbull Government is continuing to create the right environment for small businesses to grow, invest, hire more Australians and pay them more, including by reducing small business taxes, simplifying small business GST reporting and extending the instant asset write-off.
Media Contact: Whil Prendergast – 0427 672 815