Business confidence hits record low in April
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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
Boost Business Loan - powered by Business Fuel
Get secured or unsecured business funding for up to $250K. For loan terms of 6 months to 2 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.
Interest Rate
Upfront Fee
Funding speed
from 14.00% p.a.Details on applicationFrom 24 hoursBoost Business Loan - powered by Business Fuel
Get secured or unsecured business funding for up to $250K. For loan terms of 6 months to 2 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.
- Interest Rate
- from 14.00% p.a.
- Upfront Fee
- Details on application
- Ongoing Fees
- $0
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- -
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured or Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly
- Repayment types
- -
- Minimum trading period
- 1 year
- Minimum annual turnover
- $120,000
- Application speed
- From 24 hours
- Approval speed
- From 24 hours
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- From 24 hours
- Extra repayments allowed
- -
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- -
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- All industries supported.
- Other restrictions
- Loans up to $100K: No upfront collateral required Loans between $100K to $200K: Borrower must be a property owner Loans over $200K: Borrower must be a property owner, and the loan will be secured
Unsecured Business Loan
A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.
Interest Rate
Upfront Fee
Funding speed
from 9%-Within same dayUnsecured Business Loan
A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.
- Interest Rate
- from 9%
- Upfront Fee
- -
- Ongoing Fees
- 2.5% establishment fee of the disbursed amount.
- Late payment fee
- $50.00
- Transaction fee
- $0.00
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- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $300,000
- Minimum loan term
- 3 months
- Maximum loan term
- 4 years
- Repayment frequency
- Weekly
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- Principal & Interest
- Minimum trading period
- 6 months
- Minimum annual turnover
- $60,000
- Application speed
- within 24 hours
- Approval speed
- 2 hours
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- Within same day
- Extra repayments allowed
- yes
- Redraw allowed
- yes
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- Early payout options and early repayment discounts are available. Principal-only payout available after 6 months.
- Other restrictions
- Loans above $300,000 must be secured by property.
Unsecured Business Loan
Business Loans from $5,000 to $2,000,000 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 $2,000,000 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
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- $4,000,000
- Minimum loan term
- 3 months
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- 1 year
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- Weekly, flexible
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- Minimum trading period
- 6 months
- Minimum annual turnover
- $120,000
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- 10 Minutes
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- within 1 hour
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- from 3 hours
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- yes
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- Daily repayments available.
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- -
Lumi Lux
Lumi Lux™ is an innovative rate-reducing business loan that rewards customers for a good repayment history over the loan term by dropping interest rates by 25 basis points every six months (T&Cs apply). The loan is for more established businesses with minimum $2M revenue.
Interest Rate
Upfront Fee
Funding speed
from 14% to 20%-Within same dayLumi Lux
Lumi Lux™ is an innovative rate-reducing business loan that rewards customers for a good repayment history over the loan term by dropping interest rates by 25 basis points every six months (T&Cs apply). The loan is for more established businesses with minimum $2M revenue.
- Interest Rate
- from 14% to 20%
- Upfront Fee
- -
- Ongoing Fees
- 3.5% establishment fee of the disbursed amount.
- Late payment fee
- $50.00
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Property Secured
- Minimum loan amount
- $200,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 1 year
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- 4 years
- Repayment frequency
- Weekly
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- Principal & Interest
- Minimum trading period
- 3 years
- Minimum annual turnover
- $2,000,000
- Application speed
- 10 minutes
- Approval speed
- 1 to 3 days
- Funding speed
- Within same day
- Extra repayments allowed
- yes
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- yes
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- Loan interest rate decreases by 0.25% every 6 months with good repayment history up to a maximum 2% drop.
- Other restrictions
- Must be secured against property.
Short Term Business Loan
Unsecured business loans from $10,000 - $250,000, over 6 to 24 months. Online application takes only 10 minutes and you'll know if you're approved within hours. Apply now.
Interest Rate
Upfront Fee
Funding speed
On Application3.00%from 24 HoursShort Term Business Loan
Unsecured business loans from $10,000 - $250,000, over 6 to 24 months. Online application takes only 10 minutes and you'll know if you're approved within hours. Apply now.
- Interest Rate
- On Application
- Upfront Fee
- 3.00%
- Ongoing Fees
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- $0.00
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $250,000
- Minimum loan term
- 6 months
- Maximum loan term
- 2 years
- Repayment frequency
- Daily, Weekly
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- Principal & Interest
- Minimum trading period
- 1 year
- Minimum annual turnover
- $100,000
- Application speed
- 10 Minutes
- Approval speed
- from 24 Hours
- Funding speed
- from 24 Hours
- Extra repayments allowed
- No
- Redraw allowed
- Eligible to apply for renewal after 50% paid down
- Other benefits
- -
- Other restrictions
- Minimum $100k turnover and 1 Year in Business.
For more tips, check out our article on money moves to help your business survive coronavirus.
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