Business credit demand slows despite growth in asset finance

Overall business credit applications fell -3.34% (vs December qtr 2017)

• Business loan applications decreased by -5.14% (vs December qtr 2017)
• Trade Credit applications dropped by -6.05% (vs December qtr 2017)
• Asset Finance applications have grown by 1.75% (vs December qtr 2017)

The Business Credit Demand Index by Equifax measures the volume of credit applications that go through the Commercial Bureau by credit providers such as financial institutions and major corporations in Australia. Based on this it is a good measure of intentions to acquire credit by businesses. This differs to other market measures published by the RBA/ABS which measure new and cumulative dollar amounts that are actually approved by financial institutions.