Ensure you never miss an issue of the
real estate business bulletin
Property plunge threatens small businesses

Property plunge threatens small businesses

by Reporter 0 comments

A softening property market could jeopardise small businesses, one industry insider has claimed.

According to Oxford Funding chief executive Rob Lamers, small business owners often secure finance using the value of their homes, but the tepid sector may cost businesses vital funding.

"The slowdown in the property market will affect business cash flow if a loan is secured by a property's value," Mr Lamers said.

"Now that auction clearance rates have dropped, a property may undergo a revaluation that results in reduced credit."

Many small businesses secure loans against property, but Mr Lamers said this may not be the most appropriate long-term solution.

"It's better to have finance secured by your business, not your home, which doesn't grow to match your business," he said.



le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Property plunge threatens small businesses
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?