By overhauling the process customers can spend more time on innovating and growing

By overhauling the process customers can spend more time on innovating and growing

National Australia Bank (NAB) has unveiled a complete overhaul of its existing business standard loan form contracts that will “benefit” over 130,000 Australian business owners.

By simplifying contractual clauses, writing in plain English, with a major reduction in document length and one-third of existing terms and conditions being discarded – it’s toted as being part of NAB’s commitment to “lifting standards across the industry”.

The change comes after NAB announced financial indicator covenants will no longer be used in most loan contracts for new and existing small business customers with total business lending of less than AU$3 million ($2.3 million) in April 2017.

NAB executive general manager business direct and small business, Leigh O’Neill, says: “We consulted widely with industry and customers. Essentially, if the language didn’t make sense to them, we worked through a better solution together.”

NAB claims 69% of SMEs cite that dealing with red tape takes “a lot of effort” and by overhauling the process customers can spend more time on innovating and growing.

NAB chief legal and commercial counsel, Sharon Cook, says NAB is working with the wider banking industry, Australian Securities and Investments Commission (ASIC) and customers to address concerns raised in the small business and family enterprises.

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