Small businesses are seeing the least boon from recent interest rate cuts.
Fairfax has reported the SME market has received the least benefit from lenders' latest cycle of interest rate cuts. Quoting figures from RateCity, Fairfax said the gap between residential home loans and small business loans has continued to expand since the RBA began its easing cycle in November.
According to the RateCity data, small business loans have fallen by an average of 100bps, to 7.53%. Residential mortgages, however, have fallen an average of 103bps to 6.76%.
The data comes as a recent survey showed small businesses are increasingly dissatisfied with lenders. The Roy Morgan Business Banking Satisfaction Report showed that major banks fell 0.6% in May to 63.5% satisfaction among business customers. Roy Morgan communications director Norman Morris said the fall was driven by low satisfaction among business loan customers.
Banks moving backward in business satisfaction