Availability of funds

Cards (2)

  • Overall
    Availability of funds - means the ease with which businesses can access funds in the international financial markets
    Depends on things like risk, demand and supply and economic conditions e.g The GFC caused a shrinkage of funds, higher interest rates associated with the increased risk of lending
    Influence on financial management → impacts whether Australia businesses can access the money they need to expand
  • International markets and hesitancy to lend money

    International financial markets are made up of a range of institutions, companies and governments that are prepared to lend money to individuals, companies or governments who need to raise capital. Usually based on risk, demand and supply and domestic economic conditions
    Part of the reason why banks are hesitant to lend to businesses is the fact that so many businesses have failed and are experiencing difficulties meeting their current repayments