MELBOURNE, Australia — Brokers are lately becoming the lender of choice for small businesses in Australia.
According to the 2006 East and Partners, Pty, Ltd. business lending report, 17.4% of all business loans were sourced through brokers, which represent more than $90 billion of Australia's $520 billion business lending market. Just five years ago, brokers accounted for less than 6% of activity.
"Businesses are going to brokers primarily to secure better and more flexible terms and collateral than they perceive they will get from their banks–it's not just purely about price," said Paul Dowling, principal analyst at East and Partners. "Businesses, particularly smaller ones, can find the experience of applying for a loan from their bank cumbersome and generally quite negative."
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