Business confidence up as COVID-19 restrictions ease
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Confidence among Australian businesses has made a comeback, with new Roy Morgan research revealing nearly 51% feel hopeful about their financial prospects next year.
The latest Roy Morgan Business Confidence report, based on 1,749 detailed interviews, found business confidence last month rose significantly from the record low in April.
In May, business confidence soared to 89.9 points on the Roy Morgan index, up 16.7% (or 13 ppts) since April’s rock bottom.
However, this is still 24.5 ppts below levels from a year ago.
According to Roy Morgan, business confidence began to recover halfway through April and has continued on that trajectory ever since.
“For the first time this year, a majority of businesses (50.5%, up 7.4 ppts) say they expect the business will be ‘better off’ financially this time next year,” Roy Morgan’s chief executive, Michele Levine said.
Businesses also felt more optimistic about switching their gears from survival to investment. About 46% of respondents viewed 2021 as a good time to channel resources into business growth, compared to 43% who thought the opposite.
This shift in sentiment comes as Australia embraces stage 2 of easing COVID-19 restrictions and businesses begin emerging out of their forced ‘hibernation’.
The winners and losers of business confidence
Among all the Aussie states, South Australia saw the biggest jump in confidence in May to 102.5 ppts on the Roy Morgan index - up nearly 50% since April. This is closely followed by Western Australia which recorded 102 ppts on the index.
For context, 100 ppts represents neutral territory, so any number above that is considered positive.
Levine said South Australia and Western Australia's faster recovery could be due to their success in fighting the pandemic.
“Both states are opening up their economies at a faster rate than their counterparts in the east as community transmission of COVID-19 in these states have been non-existent for the last few weeks,” she said.
Meanwhile, Queensland and Tasmania fared the worst, with confidence levels in May at a much lower 80.9 ppts and 75.7 ppts respectively.
“Both states are heavily reliant on domestic tourism and with their borders closed to the larger states, these industries will continue to suffer,” Levine said.
As for New South Wales and Victoria - the two states with the most confirmed COVID-19 cases - business confidence was around the national average in May. It sat at 91.5 ppts in NSW and 87.1 ppts in Victoria.
Levine said while May’s figures are promising, Australia still has a way to go before full recovery.
“For the Australian economy to really get moving, it is vital for the two largest states NSW and Victoria to improve their business confidence,” she said.
“The two states comprise two-thirds of Australia’s $1.9 trillion economy and both continue to have low business confidence well below the neutral level of 100.”
Preparing for a reopened economy
As Australia begins to reopen its economy, it’s important for your enterprise to think of ways to transition back into ‘business as usual’.
For some small businesses, this may mean purchasing new assets, whether that’s a new coffee machine for your cafe or a tractor for your farm.
The good news is, the government has just announced it will extend the deadline for its instant tax write-off scheme by six months. So if you’re buying assets of under $150,000, you could potentially claim an immediate tax deduction on those purchases made before December 31.
Or if you’re after an extra bit of finance to cover these new expenses, a business loan could be worth considering. They’re a handy way to get your hands on additional working capital to fund things like stock and staff wages.
Ready to get started? Scroll down below to check out some business loan deals, or head over to our business loans comparison table for even more options.
Compare business loans - rates updated daily
Line of Credit
Unsecured business funding up to $500K. Start the online application process in just 5 minutes, and get access to funds within 24 hours once approved. Great for ABN registered businesses with an annual turnover of $200K+.
Interest Rate
Upfront Fee
Funding speed
On Application2% to 3%Instantly, once approvedLine of Credit
Unsecured business funding up to $500K. Start the online application process in just 5 minutes, and get access to funds within 24 hours once approved. Great for ABN registered businesses with an annual turnover of $200K+.
- 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
- 5 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
- -
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
- Repayment types
- 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.
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
- Maximum loan term
- 4 years
- Repayment frequency
- Weekly
- Repayment types
- 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
- Redraw allowed
- yes
- Other benefits
- 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.
Read our Mozo Review to learn more about the Lumi Lux
Invoice Finance
hornmoney's invoice finance system connects to your accounting software and draw down funds. There are no lock-in contracts. Get cash in your account in as soon as 24 hours. Paperless and hassle-free application. No hidden fees.
Interest Rate
Upfront Fee
Funding speed
On application, from 6%, 3% interest rate for the first 90 days.On ApplicationVariesInvoice Finance
hornmoney's invoice finance system connects to your accounting software and draw down funds. There are no lock-in contracts. Get cash in your account in as soon as 24 hours. Paperless and hassle-free application. No hidden fees.
- Interest Rate
- On application, from 6%, 3% interest rate for the first 90 days.
- Upfront Fee
- On Application
- Ongoing Fees
- 0.0
- Late payment fee
- $0.00
- Transaction fee
- On Application
- Early repayment penalty
- 0.0
- Other fees
- -
- Loan type
- Line of Credit
- Security type
- Secured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $2,000,000
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- n/a
- Repayment types
- n/a
- Minimum trading period
- 9 months
- Minimum annual turnover
- Varies
- Application speed
- 15 minutes
- Approval speed
- 24 hours
- Funding speed
- Varies
- Extra repayments allowed
- yes
- Redraw allowed
- yes
- Other benefits
- -
- Other restrictions
- ABN for over 9 months. Customer invoices are from Australian businesses.
Invoice Finance
Set up a line of credit against your debtors ledger, which grows with your business. Access funds as soon as you invoice instead of waiting for your customers to pay. ScotPac is the largest non-bank lender in Australia with over 30 years' experience partnering with local businesses.
Interest Rate
Upfront Fee
Funding speed
from 4.00% p.a.On ApplicationFrom 24 hoursInvoice Finance
Set up a line of credit against your debtors ledger, which grows with your business. Access funds as soon as you invoice instead of waiting for your customers to pay. ScotPac is the largest non-bank lender in Australia with over 30 years' experience partnering with local businesses.
- Interest Rate
- from 4.00% p.a.
- Upfront Fee
- On Application
- Ongoing Fees
- -
- Late payment fee
- -
- Transaction fee
- $0.00
- Early repayment penalty
- -
- Other fees
- -
- Loan type
- Line of Credit
- Security type
- Secured
- Minimum loan amount
- $10,000
- Maximum loan amount
- -
- Minimum loan term
- -
- Maximum loan term
- -
- Repayment frequency
- -
- Repayment types
- -
- Minimum trading period
- 0 years
- Minimum annual turnover
- $0
- Application speed
- From 24 hours
- Approval speed
- From 24 hours
- Funding speed
- From 24 hours
- Extra repayments allowed
- -
- Redraw allowed
- -
- Other benefits
- Line of Credit against debtor ledger
- Other restrictions
- -
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.