Business confidence up as COVID-19 restrictions ease
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
- 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
- -
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
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
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
- -
^See information about the Mozo Experts Choice Business Loans Awards
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