SMEs stung by rate hikes

By http://www.brokernews.com.au By BN, 17 November 2010

Businesses turning over between $1m - $20m are feeling the pain of rate hikes alongside residential borrowers.

Accounting firm WHK's latest SME Pulse Survey found over 50% of SMEs have reported experiencing hikes in the past six months - prior to the Reserve Bank cash rate increase on Melbourne Cup day - an increase of more than 10% on the group's August findings.

The survey found that on average, interest rates have been increased by 6% over their previous levels. However, 43.3% of SMEs still plan to increase their lending facilities in the next six months.