ANZ exits SME invoice discounting

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23 June 2009

ANZ Bank has announced it is closing its discount invoicing division for SMEs in Australia.

ANZ Bank has announced it is closing its discount invoicing division. The bank provided invoice financing to small and medium sized enterprises (SMEs) in its domestic market of Australia. The bank has stated it will notify the 1% of its commercial customers who use product and will offer them other alternatives over the next 12 months.

Invoice discounting allows the bank to lend immediate funds to firms against their invoices. The bank, or discounter, effectively buys the debt at a discount, typically between 80% - 85% of the value of...

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Poll

Will Russia’s recent ban on grain exports result in a significant rise in private risk insurance claims from grain traders unable to fulfil their contracts?

Yes – there will be more claims. The government’s actions allow traders, with PRI cover, to make claims through contract frustration.

No - the majority of Russia’s wheat production, some 70%-80%, is used for domestic consumption so the contracts represent only a small portion of the total wheat market, limiting the amount of potential claims.

23%

No - traders had a week’s notice before the ban allowing them to secure alternative supplies to fulfil contracts stated as optional origin.

23%

Maybe - but claims are likely to be limited to traders dealing in soft wheat whose contracts demand they source wheat only from Russia.

46%