Tag Archives: business failures

5 Charts Show How Banks Are Raping Small Business

9 Jul

“If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.”

– J. Paul Getty

With Dun & Bradstreet’s most recent ‘Business Failure and Start-up Analysis’ reporting that “the number of small businesses going bankrupt jumped by 48 per cent over the last 12 months” — growing by 57 per cent over the year among firms with less than five employees, and 40 per cent over the year among firms with six to 19 employees — and that the start-up rate for small businesses fell by 95 per cent, it is worth taking a closer look at the usury rates charged by the banks for small business loans, as compared to large ones.

The following charts show the total value of variable usury-rate business loans, that have a usury rate of 17 per cent or greater.

First, loans of $100k to less than $500k:

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Loans of $500k to less than $2 million:

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Loans of $2 million and over:

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And finally, loans of less than $100k:

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Clearly there’s been no mercy shown by the usurers to their smallest business borrowers, post-GFC.

Here’s the direct comparison of business loans less than $100k, versus loans greater than $2 million, that are copping a 17 per cent or greater rate of usury:

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Click to enlarge

All-time record low “official” interest rates?

Perhaps someone forgot to tell the usurers.

Who needs small businesses anyway, right?

Monopoly “capitalism” is much better.

For the 0.1% at the very top.

“Competition is a sin.”

– John D. Rockefeller

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Business Failures Rise 25%

13 May

From Dun and Bradstreet:

Business failures jumped nearly 25 percent in 2010 as cash flow pressures made their presence felt even as the Australian economy continued to be one of the better performers in the developed world.

This is just one finding from new research by Dun & Bradstreet examining new and failed business trends over the last three years, which includes the Global Financial Crisis (GFC) and Australia’s return to post-crisis growth.

The research found that while business failures climbed marginally in 2009, during the peak of the GFC, there was a dramatic upturn in 2010. The rate at which businesses failed in 2009 climbed a marginal 4 percent to just over 8,000 however spiked dramatically in 2010 by more than 23 percent to over 10,000 firms.

As a small business owner myself, Tony Abbott’s Budget Reply speech last night included a number of lines that really resonated with me. And doubtless with many tens of thousands of other small business owners throughout the nation (emphasis added):

“… the Coalition is always looking for ways to help small business suffering in a patchwork economy because that’s where jobs are created and families get ahead.”

“Mr Speaker, Labor can’t help treating small business with suspicion as potential tax cheats and havens for non-union workers. The Coalition thinks that small business is more likely to treat workers like family and is the engine of higher employment and greater prosperity.”

When it comes to government economic policy, we are the “forgotten Australians”.

A family to our workers.

And the now-sputtering engine of Australia’s real economy.

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