Tag Archives: competition

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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A Little Less Conversation

23 Mar

Media Release – Senator Barnaby Joyce, 23 March 2010

The Finance Minister, Lindsay Tanner, today expressed concern that Australia has too many of its export eggs “in one basket.” Senator Barnaby Joyce today responded by noting that this mock concern comes from the same government that continues to borrow $1.5 to $2 billion a fortnight.

“Export industries, other than the mining sector, are being “crowded out” by the government’s reckless and wasteful stimulus spending. This spending puts upward pressure on interest rates, making it harder for exporting firms to access finance. We have seen four interest rate rises in six months.” Senator Joyce said.

“But also when the government is borrowing at this pace, others have to go offshore. This increases our foreign debt and puts upward pressure on our exchange rate. Our exchange rate has increased 30 per cent over the last year. This hurts industries like the tourism sector. Unemployment is 12.4% in Far North Queensland at the moment, where the tourism hub of Cairns once generated a lot of jobs.”

“If Mr Tanner wants to encourage export diversification he needs to engage in less talk and more action.”

Mr Tanner tried to point to the government’s policies to invest in infrastructure and increase productivity as the ways it is helping export industries.

“This is a government that doesn’t do a business plan on a $43 billion broadband network. How does it even know that these investments will increase productivity? And, Mr Tanner is also the Minister for Deregulation, but the COAG Reform Council showed earlier this month that progress on four out of eight competition reforms is stalled. This includes national transport reforms, which are crucial if our export industries can get their products to ports cheaply and quickly.”

More information- Jenny Swan 0438 578402

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