An insolvency specialist is warning business owners to be alert to the risks associated with falling property prices, given the family home is often used as security for business finance.
Trent Devine, a partner at Jirsch Sutherland, suggested that the huge boom in values particularly on Australias east coast has helped many businesses stay afloat by dipping into equity. But this strategy may now come back to bite them, amid a backdrop of falling property prices and banks hiking interest rates.
Any business that has used personal finances for business borrowings is at risk, said Mr Devine.
In the past, when times were tough, struggling businesses have been able to lean on the equity of their home. Now, with falling house prices and other …
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