The business credit market remains weak, despite the introduction of the SME loan guarantee scheme and other stimulatory measures put in place last year.

According to the latest Reserve Bank lending data, lender’s business loan books fell 0.1 per cent in January 2020, compared with the previous month, and grew by just 0.5 per cent over the 12 months to January.

The mortgage market maintained its modest growth, with lenders’ balances increasing by 0.4 per cent in January and by 3.6 per cent over the 12 months to January.

Owner occupiers continue to drive the market, with balances up 0.5 per cent month-on-month and 5.7 per cent over 12 months.

Investor mortgage balances grew 0.1 per cent month-on-month and 0.1 per cent over 12 months.

The decline in the personal lending market continued, with lenders’ balances down 0.9 per cent month-on-month and down 12.4 per cent over 12 months.

And in an update on business conditions released on Friday, the Australian Bureau of Statistics said that in February 30 per cent of businesses reported that they were impacted by reduced cash flow, compared with 72 per cent in April last year.

In February, 28 per cent of businesses said they were impacted by reduced demand, compared with 69 per cent in April last year.

Forty-one per cent per cent of businesses said cash on hand would cover less than three months of business operations, compared with 29 per cent in October and June last year.