Business confidence hits record low in April
Optimism among Australian businesses remains weak amid COVID-19, with new research showing nearly 3 in 4 don’t expect the economy to fare well over the coming year.
The latest Roy Morgan Business Confidence poll, based on 1,191 detailed interviews, found business confidence during April dropped to a record low for the second month running.
On the Roy Morgan index, confidence fell by 19% to 76.9 points.
In April, more Aussie businesses (65%) said they were in a worse financial position now than this time last year.
And they didn't feel reassured about the future either. Almost half of respondents saw 2021 as a bad time to invest in business growth, compared to just one-third who thought the opposite.
Looking further ahead, the report also recorded a rise in the number of businesses who believed the Australian economy won’t recover any time soon. Over half of respondents expected its poor performance to continue over the next five years.
This plunge in confidence came as stringent social distancing measures introduced by federal and state governments were in place throughout April.
Such measures have drastically affected business operations, with recent Commbank research showing they caused an even sharper decline in business activity over April than the month prior.
Three-stage plan: A ray of hope ahead
Despite these findings, the Roy Morgan report hinted there is light at the end of the tunnel.
Notably, business confidence began to climb back up halfway through April, amid news of the curve flattening and the Morrison Government proposing a three-stage plan out of coronavirus lockdowns.
As Roy Morgan’s chief executive, Michele Levine explained, “[the] good news is business confidence bottomed in the first half of the month and has since improved.”
During the second half of April, confidence averaged 82.0 - up from 69.3 in the first two weeks.
Levine added that Aussie businesses last month also felt more certain they could get ahead of the downturn.
"Perhaps surprisingly, Australian businesses were growing more confident in April about their own prospects, with 43% [of respondents] expecting the business to be ‘better off financially’ this time next year - up 3.6 ppts from March,” she said.
Next steps for your business
With the first set of restrictions set to lift over the coming weeks (timing will depend on the state), some businesses are preparing to reopen.
Under step one of Morrison’s plan, cafes and restaurants will be allowed to seat 10 patrons at a time, given that they abide by the four square metres per person rule. Retail stores will also open, along with hairdressers and barber shops which must record their customers’ contact details.
Step two will involve double the numbers of patrons allowed in cafes and restaurants. A host of other businesses will also be permitted to open with up to 20 customers at a time, including cinemas, indoor gyms, galleries, massage and beauty therapy clinics and tattoo parlours.
Step three will see the maximum gathering size increase to 100.
If you’re looking for extra finance to help kickstart operations again and get your enterprise back on its feet, a business loan could help.
Right now, you can snatch up a competitive deal, thanks to the series of business loan rate reductions following the March RBA emergency rate cut.
Securing additional working capital should also be easier under the government’s SME Loan Guarantee Scheme, which guarantees 50% of all eligible unsecured loans of up to $250,000 and will run until 30 September.
Interested in taking out a business loan today? Get started with these options below.
Compare business loans - rates updated daily
- Featured Product
Line of Credit
Zip Business Loans online application process can be completed in as little as five minutes, and once approved you can access the funds within 24 hours. A line of credit up to $500k that converts into a loan when you draw down. Participating lender in the SME government guarantee scheme.
Interest Rate
Upfront Fee
Funding speed
On Application2% to 3%Instantly, once approvedLine of Credit
Zip Business Loans online application process can be completed in as little as five minutes, and once approved you can access the funds within 24 hours. A line of credit up to $500k that converts into a loan when you draw down. Participating lender in the SME government guarantee scheme.
- Interest Rate
- On Application
- Upfront Fee
- 2% to 3%
- Ongoing Fees
- $0.00
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- 0
- Other fees
- Various late payment fees may apply.
- Loan type
- Line of Credit
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 6 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly, Fortnightly, Monthly
- Repayment types
- Principal & Interest
- Minimum trading period
- 18 months
- Minimum annual turnover
- $200,000
- Application speed
- 10 minutes
- Approval speed
- 24-48 hours
- Funding speed
- Instantly, once approved
- Extra repayments allowed
- Yes
- Redraw allowed
- Yes
- Other benefits
- -
- Other restrictions
- -
Unsecured Business Loan
Business Loans from $5,000 to $600,000 with high approval rates. Access to funds in as little as 3 hours. Cash flow friendly repayments and open minded offers.
Interest Rate
Upfront Fee
Funding speed
On Application3%, starting at $399from 3 hoursUnsecured Business Loan
Business Loans from $5,000 to $600,000 with high approval rates. Access to funds in as little as 3 hours. Cash flow friendly repayments and open minded offers.
- Interest Rate
- On Application
- Upfront Fee
- 3%, starting at $399
- Ongoing Fees
- no
- Late payment fee
- $50.00
- Transaction fee
- -
- Early repayment penalty
- no
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $600,000
- Minimum loan term
- 3 months
- Maximum loan term
- 1 year
- Repayment frequency
- Weekly, flexible
- Repayment types
- Principal & Interest
- Minimum trading period
- 6 months
- Minimum annual turnover
- $120,000
- Application speed
- 10 Minutes
- Approval speed
- within 1 hour
- Funding speed
- from 3 hours
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- Daily repayments available.
- Other restrictions
- -
ANZ Next Step Business Loan
Enjoy a flexible business loan for up to $200,000. Apply in just 20 minutes online. Get fast conditional approval and get your funds in days. No assets required for approval. Apply now. Participating lender in the SME government guarantee scheme.
Interest Rate
Upfront Fee
Funding speed
from 4.24% p.a. variableNo loan approval fee2 business daysANZ Next Step Business Loan
Enjoy a flexible business loan for up to $200,000. Apply in just 20 minutes online. Get fast conditional approval and get your funds in days. No assets required for approval. Apply now. Participating lender in the SME government guarantee scheme.
- Interest Rate
- from 4.24% p.a. variable
- Upfront Fee
- No loan approval fee
- Ongoing Fees
- No loan account fees
- Late payment fee
- $35.00
- Transaction fee
- not disclosed
- Early repayment penalty
- no
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $200,000
- Minimum loan term
- 1 year
- Maximum loan term
- 5 years
- Repayment frequency
- Monthly
- Repayment types
- Principal & Interest
- Minimum trading period
- 1 year
- Minimum annual turnover
- $75,000
- Application speed
- 20 minutes
- Approval speed
- 2 business days
- Funding speed
- 2 business days
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- Financed under the Australian Government’s SME Guarantee Scheme.
- Other restrictions
- -
Read our Mozo Review to learn more about the ANZ Next Step Business Loan
Fully Drawn Loan
Heritage Banks Fully Drawn Business Loan is a good option for most business needs such as purchasing a property, buying a business or longer term working capital requirements. Participating lender in the SME government guarantee scheme.
Interest Rate
Upfront Fee
Funding speed
2.95% p.a. variableNegotiableVariesFully Drawn Loan
Heritage Banks Fully Drawn Business Loan is a good option for most business needs such as purchasing a property, buying a business or longer term working capital requirements. Participating lender in the SME government guarantee scheme.
- Interest Rate
- 2.95% p.a. variable
- Upfront Fee
- Negotiable
- Ongoing Fees
- $20 monthly
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- $0
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured
- Minimum loan amount
- $20,000
- Maximum loan amount
- -
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- Weekly, Fortnightly, Monthly
- Repayment types
- interest only, principal and interest
- Minimum trading period
- Varies
- Minimum annual turnover
- Varies
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Extra repayments allowed
- yes
- Redraw allowed
- yes - with $20 fee
- Other benefits
- -
- Other restrictions
- Residential Security Interest Rate. A break fee applies to fixed term loans if broken early.
Read our Mozo Review to learn more about the Fully Drawn Loan
Trade Finance
Boost your purchasing power and access a flexible line of credit to pay suppliers in over 68 countries with Octet’s Trade Finance solution. Put your business in the driver’s seat with up to 120 day payment terms and up to 60 days interest free. We’ll custom-fit a Trade Finance facility based on your business needs from $200K to $7M.
Interest Rate
Upfront Fee
Funding speed
from 6% p.a.On Application2 daysTrade Finance
Boost your purchasing power and access a flexible line of credit to pay suppliers in over 68 countries with Octet’s Trade Finance solution. Put your business in the driver’s seat with up to 120 day payment terms and up to 60 days interest free. We’ll custom-fit a Trade Finance facility based on your business needs from $200K to $7M.
- Interest Rate
- from 6% p.a.
- Upfront Fee
- On Application
- Ongoing Fees
- Transaction fees apply upon utilisation of facility
- Late payment fee
- -
- Transaction fee
- Upon application
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Line of Credit
- Security type
- Secured or Unsecured
- Minimum loan amount
- $100,000
- Maximum loan amount
- $7,000,000
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- Monthly
- Repayment types
- Principal & Interest
- Minimum trading period
- 1 year
- Minimum annual turnover
- $3,000,000
- Application speed
- 2 Minutes
- Approval speed
- 24 Hours
- Funding speed
- 2 days
- Extra repayments allowed
- yes
- Redraw allowed
- -
- Other benefits
- Transactions can earn Qantas Business Rewards Points. Up to 15 currencies available for international invoice transactions.
- Other restrictions
- -
For more tips, check out our article on money moves to help your business survive coronavirus.
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