Tighter lending conditions are being felt by a number of Australian businesses. Photo source: Shutterstock

Business executives are expecting slower growth in inventories and capital equipment in the September quarter compared to the June quarter, according to the latest survey by credit analyst Dun & Bradstreet.

The report is in line with figures from the Reserve Bank of Australia which show many businesses had less access to credit in the last quarter, with business credit declining by 7% over the year to April.

According to Dun & Bradstreet CEO Christine Christian, recent interest rate rises and tight lending conditions are being felt by a number of Australian businesses.

She says the reduction in capital investment and inventories expectations is a sign that Australian executives believe credit will continue to be tight in the coming quarter.

"Given one in five businesses consider access to credit to be the most important influence on their business in the quarter ahead, executives will be watching the RBA's interest rate plans very closely in coming months.

"The critical factor now is how significantly tightening financial conditions will impact the growth plans of Australian firms and what executives will do to address these challenges."

Ben Rainsford, chief executive officer of Task Forklifts, tells Forkliftaction.com News that credit access is a growing concern in the industry, with more customers struggling to raise finance for forklift purchases.

He says as a result of tightening financial conditions, the company has focused more on its core activity than on its development plans in Australia. However, he adds that export sales continue to perform above expectations and has been a significant growth area.

Also of concern, says Rainsford, is the general conservative approach by customers at the moment. "Recent changes to the 'Mine Tax' have had a dramatic impact on booked orders for this industry sector," he notes.

Another forklift supplier, who wishes to remain anonymous, tells Forkliftaction.com News that access to funds is a significant issue for its customers, both large and small.

"For many of our customers, the availability of in-house finance from (our company) has become more significant in recent times."

He says the lack of confidence in the marketplace is concerning, with many businesses delaying forklift acquisition plans on a 'wait and see' basis.

"This is most obvious in business related to the mining sector," he says.