The Carnell Inquiry into small business loans recommends changes to how banks deal with small business customers.
“In the event that the changes are adopted, banks will have to communicate much further in advance to their customers about changes in the covenants or other criteria around existing loans or facilities that rollover regularly.
“The proposed rules should better protect borrowers than in the past because they will have more time (depending on style of loan) to respond to their bank about the changes required. With the right assistance, they can bring forward evidence to show the banks their ability to service facilities and/or provide more security.
“The establishment of the Omniwealth Advisory Services brings together the existing SME advisory services plus specialist reconstruction and business recovery expertise to assist businesses in navigating new bank lending practices. We see the advisory team being able to act more like advocates for our clients with the banks because the banks will be required to release much more information as to their concerns about the client’s ability to meet their financial liabilities.
“Where a bank has concerns over valuations of property and other assets that support loan facilities, these concerns, often created by a computer-generated alert within the bank or the results of an Investigating Accountant’s Reports ordered by the bank, will be communicated in a timely way to clients so they can respond,” said Atle Crowe-Maxwell, Director, Omniwealth Advisory Services.
Atle Crowe-Maxwell
Director
Omniwealth Advisory Services
t: 02 9112 4344
e: atle@omniwealth.com.au