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Smes say their biggest money stress is no longer pandemic related

SMEs say their biggest money stress is no longer pandemic-related

The financial impact of COVID-19 on small businesses may be lessening, but new research shows other pressures including cashflow and utility bills have crept up back to pre-pandemic levels. The report from accounting platform MYOB released this week, found that cashflow and the cost of utilities were top concerns for small to medium-sized enterprises (SMEs) over the past six months, felt by 32% of respondents. The bi-annual MYOB Business Monitor also revealed a growing number of SMEs have concerns around accessing business finance (up 6%) and dealing with late customer payments (up 4%). These two money worries saw the biggest jump in percentage points since December last year. Meanwhile, 35% of SMEs said they still feel pressure from the pandemic, but that figure is down 20% compared to the same time last year. The report is based on a survey with more than 1,000 small business owners and operators. MYOB’s general manager for SME, Emma Fawcett said small business issues that temporarily fell off the radar during the pandemic have now returned. “It’s an unfortunate return to ‘business as usual’ for the country’s 2.29 million SMEs with 14 of the 16 business pressures measured by the MYOB Business Monitor increasing in the last six months. This demonstrates that as COVID-19 pressure subsides, other business pressures increase,” she said. “SME concerns with payment times and old bugbears associated with physical presence - such as utilities like electricity and gas - are back on the table.”

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Commbank expands zero interest credit card to support boom in millennial business owners

Commbank expands zero-interest credit card to support boom in millennial business owners

In response to more millennials becoming entrepreneurs over the past year, the Commonwealth Bank has now extended its zero-interest credit card ‘Neo’ to small business customers.‘Neo’ was launched some eight months ago to compete with the rise of Buy Now Pay Later products, and came soon after fellow big bank NAB’s release of its own version of a zero-interest credit card called StraightUp. While this product was initially meant for consumers, CommBank’s latest research suggests younger small business owners are another untapped market. CommBank found that customers aged 25 to 40 made up more than half of all its new business transaction accounts in the last six months. These millennials accounted for 57% of new bank accounts during this period, while Gen Zers (those aged 24 or younger) opened another 10% of new accounts. The research also revealed that the portion of millennials with a side hustle has risen by a massive 40% over the past year. “While it’s been a challenging year for many small businesses, the pandemic did present entrepreneurs with the time and opportunity to start a small business as a passion project or an alternative source of income and we’ve seen many of our new business customers skewing younger,” CommBank’s executive group manager of small business banking, Claire Roberts said.

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Guide to lenders participating in the sme loan guarantee scheme

Guide to lenders participating in the SME Loan Guarantee Scheme

At a time when many small businesses are finding it difficult to get approved for finance, the federal government has stepped in with its SME Loan Guarantee Scheme to cut through some of the red tape.This scheme is designed to help eligible small to medium sized enterprises (SMEs) get access to cheaper funding, as it involves the government guaranteeing a portion of eligible business loans - 50% in phase two and 80% in its latest version known as the SME Recovery Loan Scheme. But to be covered by the guarantee, your lender must be approved to partake in the scheme. There are 39 lenders participating in phase two right now:

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Square to roll out interest free business loan to australia

Square to roll out interest-free business loan to Australia

US-headquartered lender Square has just announced plans to expand its business loan product to Australia, in an effort to reduce the red tape around accessing additional working capital. Square’s decision to move beyond its domestic market came in light of its own research. Its survey found that more than half of Australian businesses have been negatively impacted by COVID-19 and yet only 1 in 4 business owners have accessed formal forms of finance like business loans. Meanwhile, a far larger portion of respondents - two-thirds - have relied on more private sources of funding, such as personal credit cards or borrowing from family and friends.“It’s no secret that small businesses in Australia have historically faced huge hurdles when it comes to accessing formal forms of finance,” said Square Australia’s head of industry and payments, Samina Hussain-Letch.“They’re often forced to pour over piles of paperwork, provide years of financial information, and put up personal guarantees that can be riddled with red tape.” So, what’s the solution to these barriers? That’s where Square Loans comes in.

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Sme loan guarantee scheme which businesses have been approved and will you fit the bill for phase two

SME Loan Guarantee Scheme: How many businesses have been approved, and do you fit the bill for phase 2 and 3?

With phase two of the government’s SME Loan Guarantee Scheme in full swing and phase three just released, businesses across Australia now have plenty of opportunity to access cheaper funding to boost their cashflow. Under the first phase, the government guaranteed half of all unsecured three-year business loans of up to $250,000. But under phase two which is set to run until 30 June 2021, the loan terms have been extended to five years, and loan amounts increased to $1 million, with 39 lenders including the Commonwealth Bank and ANZ participating in the scheme. Phase three, known as the SME Recovery Loan Scheme, has also begun as of 1 April 2021, with the caps for loan amounts and loan terms once again raised to $5 million and 10 years. Treasurer Josh Frydenberg said more than 35,000 business loans - over $3 billion of the planned $44 billion - have so far been provided to small to medium-sized enterprises (SMEs) under the scheme.And with over 350,000 businesses now left without JobKeeper payments to cover staff costs, even more may jump on board and apply for a government-backed loan.

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Commbank westpac anz nab release low rate business loans under sme recovery scheme are you eligible

CommBank, Westpac, ANZ, NAB release low rate business loans under SME Recovery Scheme: are you eligible?

In a bid to support small business recovery after JobKeeper, all of Australia’s big four banks have started offering low rate business loans of up to $5 million since April 1.These loans are available through the government’s new SME loan guarantee scheme, which has been expanded and extended for the second time since its introduction back in March last year. Now in its third phase, the scheme is open to the following businesses:

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Jobkeeper ends where to next for small business finance

JobKeeper ends: Where to next for small business finance?

JobKeeper and other government support such as the NSW commercial lease package have officially ended. For many small businesses, a big question now is how they'll be able to manage dips in cashflow as a result of withdrawn financial relief. According to recent research from Scotpac, when it comes to plans for recovery and growth for the rest of 2021, 65% of small to medium enterprises (SMEs) want to restructure their business. That includes looking for other avenues of funding.Among those surveyed, 20% SMEs said they will need to cut costs to balance out the loss of stimulus funds. Nearly 20% are looking to make arrangements with the Australian Taxation Office, while about 16% plan to apply for a business loan. Unfortunately, another 25% of respondents said they have no strategy to get back on track. There are also more SMEs than last year who said they may have to shut down or sell their business if the market doesn't significantly improve - 34%, up from 31% in 2020. These figures were based on a national poll with 1,253 small businesses, conducted as part of ScotPac’s biannual SME Growth Index. Scotpac’s chief executive, Jon Sutton said that while there are a few “green shoots” indicating that the small business sector has withstood the worst of the pandemic, “the recovery is uneven and varies significantly by state, region and industry”. “Many businesses are forecasting growth, but many are not out of the woods yet,” he said. On the one hand, according to ScotPac's survey, 44% of SMEs feel more confident about running their business compared to pre-COVID, and about 55% have expressed plans to invest in growth over the next six months - up 3% since late last year. Scotpac’s SME revenue growth forecast is also up eight points for the first half of 2021. On the other hand however, Sutton said a lot of small businesses continue to do it tough. “There are positives, but we have to be realistic about what lies ahead. We still have half of the businesses polled this round, saying they are not yet ready to invest back into their business,” he said.

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