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What was the toughest decision you've ever had to make? Was it to do with people, money or something else?
When it comes to business, the toughest decisions relate to finance, according to a new survey by the business and private banking arm of National Australia Bank (NAB). The NAB survey of 410 businesses identified the most difficult business decisions made by small to medium (SME) business owners and managers.
"Almost a quarter (24.5%) of business leaders said finance and investment were the toughest decisions they've ever had to make," said George Frazis, executive general manager of Business and Private Banking Australia at NAB.
"This includes deciding when to invest in the business, what to purchase and when, leasing premises and equipment or determining when to buy instead of lease, be it equipment or property.
"Decisions regarding staff are the second-hardest business decisions business owners and managers have to make," said Mr Frazis today.
Other tough decisions for 13% of SME leaders included deciding to start a business, with a similar amount finding it tough to decide to sell or close a business.
Respondents also identified other areas of difficult decision-making such as expanding or relocating, supplier and customer issues, retirement or selling property or assets.
| Concerns |
Percentage |
| Finance and investment |
24.5% |
| Staff issues |
22% |
| Opening a business |
13.1% |
| Closing/selling a business |
13.4% |
| Expanding/relocate/strategy |
8.5% |
| Supplier/customer issues |
5.4% |
| Issues with business partners |
2.4% |
| Retire |
2.2% |
| Sell property or assets |
2.2% |
| Other |
6.3% |
Source internal NAB survey of business customers.
One respondent commented "taking out finance for our business was scary," while another said "any purchase is hard".
Mr Frazis said: "We are responding to these concerns and want to help ease business customers' anxieties by making finance easier."
NAB has introduced a number of initiatives to improve its ability to meet its business clients' needs. The initiatives include:
* Providing business customers with easier asset finance and leasing,
* "On The Spot" business loans, where customers receive faster response times to their requests for loans - many taking only 15 minutes to complete, and
* Improved credit decision processes that increases credit decision limit for NAB's frontline relationship managers.
"These initiatives demonstrate NAB's commitment to reducing complexity and simplifying finance so that our business customers can have and operate the business they want," said Mr Frazis.
About the survey
The survey of 410 businesses was conducted via telephone by NAB's Business and Private Banking Australia division in April-May 2006, to better understand the needs of its customers.
About NAB Business and Private Banking
The National Australia Bank employs over 5,650 business banking specialists and 450 financial planners and specialists at over 158 business banking centres Australia wide. It is one of the market leaders in providing business banking services to Australian business. For further information visit http://www.nab.com.au/Business_Solutions
For further media information, please contact:
Guy McKanna
Head of Corporate Affairs
National Australia Bank Limited
T (02) 9237 9817
M 0402 893 843
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