NWC Finance partner Joe Morello said there was a surge in demand from accountants and their clients due to banks adopting stricter measures regarding financing as a result of new APRA controls on their capital adequacy and concern about potentially high-risk loans.
“There has been a surge in calls this year from accountants whose clients’ finance has fallen over literally hours before settlement of purchases or expiration of finance facilities, slow or lack of payment by debtors, or an urgent need for new capital,” said Mr Morello.
“We are finding that this is happening more often as the banks are pulling their funding for deals often too late for clients or arrange alternative finance from top and second-tier banks.
“This is a major concern for accountants whose clients often run out of time and alternative lenders to save their precarious financial position.”
Along with a slew of tougher lending policies introduced by the banks in 2015, the APRA also imposed tighter controls over investor loans and installed tougher rules on bank mortgage lending.
Mr Morello spoke to Accountants Daily about what he expects to see over the next six to 12 months.
“For accountants, I think they're used to dealing just with the banks,” Mr Morello said.
“They don't deal much in the private sector but that's not going to be the case in the near future because people are going to need to be dealing with privates to move forward with their businesses and companies.”
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.