A recent global study has named Australia as one of the best countries in the world for small businesses, with easy access to credit one of its strongest points.
The Doing Business 2014 survey, run by the World Bank in conjunction with the International Finance Corporation, ranked 189 countries in terms of how easy it is to start and run a business there.
Australia placed a commendable 11th place in the list, according to a November 11 media release. A "streamlined approach to accessing credit", coupled with a strong legal framework and a wealth of credit information, were the main factors that helped it attain its ranking.
In terms of access to credit, Australia came third in the world, ahead of countries such as Japan and Canada, who were both placed 28th.
With cash flow solutions such as debtor finance that are tailored especially to small businesses, it is no surprise why Australia managed such a high placing in this area.
Additionally, the survey indicated that Australia has well-developed credit infrastructure. The strength of Australia's legal rights index achieved a maximum score of 10 out of 10, while our depth of credit information scored five out of six.
Australia also excelled in other key aspects where small businesses commonly encountered roadblocks. For example, it appears that the time required to enforce contracts in this country is relatively low, taking an average of 396 days. Comparatively, it takes well over 500 days to enforce contracts in nations such as Taiwan, the Philippines and India.
Overall, the survey ranked Australia as the fourth easiest country in which to operate a small business, behind only New Zealand, Canada and Singapore, with only an average of two and a half days needed to register a new business here.