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US-based lender Square Capital 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.
After a tough year, many small businesses are looking to transition out of survival mode and begin growing their operations again. In these times of economic uncertainty, managing the ups and downs of your business’ cashflow can be made easier with the right banking products under your belt.Whether it’s a business loan to help fund ‘big ticket’ purchases such as stock or new equipment, a credit card to cover smaller cashflow shortages, or a bank account to keep track of all your business transactions, you’ll have plenty of attractive offers to sift through.So to help you shop around, here are our editorial picks for top business loans, bank accounts and credit cards available to Australian businesses right now. Read on for a snapshot of their key features.
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:
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.
Mozo is everything business banking should be - fast and easy. If you are self employed, starting a new business or simply looking to get a better banking deal for your small business, Mozo helps you to compare business credit cards, business loans, savings, business bank accounts and more. Our database has all the major banks and challenger brands, fees, interest rates, terms and conditions in the one place making it easy to shop around for a better deal for small businesses. With our nifty comparison tool you can compare banking products side by side or add them to a shortlist - all in a few simple clicks. No queuing in bank branches or wasting hours with complicated spreadsheets.
We know that many business need a line of credit to invest in developments or to purchase stock, so have plenty of information about short term business loans in Australia. We also have a business loan repayment calculator so you can easily work out how much funds you need to allocate to service your loan and when you can expect to have it paid off.