Heritage Business Lending balance grows against industry trend

Despite reports of a shrinking asset base in the business lending sector, Heritage’s Business Lending balances have experienced steady growth reaching $100m, the Society has announced.

Head of Business Banking Gerard White said that Heritage had written 21% more business from 7/09 – 12/09 against the six month period of 7/08-12/08.

“Our record balance sheet growth has been driven by our competitive interest rates on loans in comparison to the major lenders where a shrinking asset base has been more pronounced”, he said.

Heritage has also achieved strong growth in its Business Lending balances of 17.2% from 30/6/09 to 31/12/09 amid reports of a suffering market.

The RBA financial aggregate for business lending has been reported to be down by four percent over the past six months, with the pace of decline said to be quickening rather than slowing down.

Mr White said that as a smaller player Heritage continues to show comparatively stable growth in the area of Business Lending while remaining prudent in its lending approach.

“Given the recessionary times that continue to impact many businesses, our solid Business Lending balances have been received favourably,” he said.

Heritage CEO Mr John Minz said that Heritage has always ensured that it is fair to its members, providing lower fees, charges and lending rates, and higher deposit rates as compared to its major competitors.

"We are proud of this landmark achievement and look forward to further growth in our business banking relationships,” he said.

“This commitment, as reflected in the consistent growth of our business banking services, is part of the People first approach that Heritage operates by.”

* Based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.