New SME Loan Guarantee Scheme to offer bigger benefits to small businesses

Thursday, 11 March 2021

With the end of JobKeeper approaching in just over two weeks, the federal government today announced it will be extending its loan guarantee scheme for small businesses, in an effort to boost economic recovery. The new scheme will see the government guaranteeing 80% of business loans issued by participating lenders to small to medium-sized enterprises (SMEs), instead of the current 50%. Under the scheme, SMEs could take out much larger loans of up to $5 million over a longer period of ten years. And instead of a six-month repayment holiday businesses can opt to pause their loan repayments for 24 months. Another important change is that the new version will cover refinancing, which means SMEs may be allowed to switch to a better interest rate available under the scheme as well as access other benefits like longer loan terms. “The SME Recovery Scheme is part of the next step in our plan to help small businesses stand on their own two feet as the economy recovers from COVID-19,” Treasurer Josh Frydenberg said.“The expansion and extension of the loans will back businesses that back themselves and will help businesses who continue to do it tough build a bridge to the other side of the crisis and keep their staff employed.” To be eligible, businesses must have been on JobKeeper between 4 January and 28 March. Applications open from 1 April 2021 and must be approved before 31 December 2021. The government expects that over 350,000 JobKeeper recipients will qualify for this new scheme. Australian Banking Association’s chief executive, Anna Bligh welcomed the extension, saying it will give Aussie businesses the funding and backing they need.“This is the right product for the times. It includes more flexibility, and will allow small businesses to re-stock, rebuild and recover,” she said.Council of Small Business Organisations Australia’s chief executive Peter Strong also voiced his support. “This sends a message to businesses that wish to perhaps expand their manufacturing base, or those businesses that are still going through a difficult time but know they have a viable, that they can go to their bank and openly discuss their situation,” he said. For more COVID-related resources, visit our guide where we cover the many financial support measures available to your household and small business. Or scroll down below to start comparing a few business loan options.

7 of the top SMSF savings accounts on the market today

Last updated Wednesday, 24 February 2021

If you’ve taken control of your own super with a Self-Managed Super Fund, part of your strategy may be finding a top value savings account to stash your retirement dollars in, with zero fees, easy access and a great interest rate. But that’s sometimes easier said than done.

Women-owned businesses go digital to attract customers post-lockdown

Thursday, 18 February 2021

Small business survival over the past year has hinged on resilience, with many owners and entrepreneurs embracing digital solutions to navigate the fallout from COVID-19 restrictions. Shirley Yuan, who runs a Sydney-based jewellery store Shirley and Owen, was one such business owner who had to close up shop for three months during the 2020 lockdowns.But she said that those tough times gave her an opportunity to pick up new skills. “I bought a small light room to take photos of my jewellery for my customers. I also learnt a bit of marketing from my daughter. It amazed me that there are so many ways to do advertisements through social media,” she said. Yuan is not alone. According to new data from women’s community group Business Chicks , 65% of women business owners have been investing more in online marketing since the pandemic. More specifically, around 24% of women business owners are spending more on social media ads. Meanwhile 20% have increased their spend on IT/tech support, 19% on creative/design software, 15% on email marketing, and 7% on their Customer Relationship Management (CRM) platforms. Virtual chat/video streaming as well as learning and development have also risen in priority, with 25% and 29% respectively spending more on these areas. Out of the survey’s 586 Aussie women participants, nearly a third are now their own bosses. About 13% have started their own business while still working for someone else. “Record numbers are now running their own show and looking at ways to expand their business,” Business Chicks’ content and marketing manager, Brion Hunt said. “We are seeing a lot of SMEs re-examine their core offering, how they deliver it and how they reach and talk to their clients,” Business Australia’s general manager of content and acquisition, Genevieve Brock added.“That has prompted [businesses to] re-examine their marketing strategies as well,” she said.

American Express launches business loan to assist SMEs

Monday, 15 February 2021

American Express is well known for its range of credit cards for the average Aussie or business owner. However, the credit card giant has now decided to move beyond plastic and enter the business loans market - a first for Amex outside of the United States. The decision to take on a new credit product like business loans came as a response to the rising number of small to medium enterprises (SMEs) planning to take out more than $130 billion of additional capital this year. “Many businesses are still feeling the full impact of the Covid-19 crisis, while others have rebounded with their sights firmly set on growth. We have taken a transformational step to evolve our business beyond our existing card offering to help support businesses on their journey forward,” said vice president of Global Services for American Express, Martin Seward. In order to make these loans a reality, American Express partnered with global organisations platform, ODX. “Given the dramatic shift in customer needs and preferences during the pandemic, it’s more important than ever to provide them with a digital and frictionless experience to tap into financing,” said president of ODX, Brian Geary. Jumping into the details, the American Express Business Loan will feature:

Winners announced in the 2021 Mozo Experts Choice Awards for Small Business & SMSF Accounts

Last updated Thursday, 11 February 2021

If savings is on your agenda for 2021 or you simply want to manage your money more effectively as a small business owner, it pays to shop around to find the best banking deals out there.With so much on your plate running your small business, the less you need to worry about your banking the better. But the question begs, are you making the most of your money?With factors like hidden fees, employee wages, cash-flow and much more to consider, shopping around will benefit the way you operate in the long run.“By not shopping around you could be throwing thousands of dollars down the drain,” said Peter Marshall, Mozo Experts Choice Awards judge. “With savings rates at such low levels, it’s more important than ever to proactively manage your accounts and get the best deals you can. In these awards, we compared and found that there was a vast difference between the lowest and highest interest rates of business accounts.”And the crown goes to…

Small business support in 2021 what experts are proposing after jobkeeper ends

Small business support in 2021? Experts propose HECS-style loans after JobKeeper

Thursday, 14 January 2021

Small Business Ombudsman Kate Carnell has renewed calls for the federal government to provide HECS-style loans to businesses to help them stay afloat once JobKeeper ends in March.These ultra-low or zero-interest business loans would be government-funded and help boost cashflow, and similarly to the student HECS-HELP loan, would only be repaid once the business hits a certain agreed level of revenue.Carnell says that “somewhere between 25-30% of businesses are still really struggling.”“[That may be] because of the industry that they’re in, border closures, shutdowns, COVID requirements - a whole range of reasons why they’re not recovering at the same sort of rate as other businesses,” she says. “There are some [businesses] that are tracking in the right direction and they will be alright, but there needs to be an option for those that aren’t.”

Buy Now Pay Later service Zip partners with Facebook to support eCommerce businesses

Friday, 11 December 2020

At a time when online shopping is surging and eCommerce has become an undeniably crucial avenue for reaching customers, two companies have joined forces to help Australian small businesses pay for their social media advertising with Buy Now Pay Later (BNPL). BNPL service Zip today announced it has teamed up with social media giant Facebook to allow small to medium enterprises (SMEs) to use Zip Business when funding their marketing campaigns on the platform. Zip Business gives SMEs access to unsecured business loans of up to $500k, with interest only charged on the amount you end up using (not the total amount you’re approved for). According to Zip’s co-founder Peter Gray, the partnership is part of efforts to address cashflow issues that might hinder many small businesses from taking their digital operations to the next level. “92% of small businesses believe they would have generated more revenue in the previous year if their cashflow was better,” he said. “Partnering with Facebook is an important step not only in the expansion of Zip Business, but in helping small business owners to capitalise on the recent growth in the eCommerce sector and to get ahead.“With 14 million Australians using Facebook every day, the social network is an increasingly important advertising channel for small businesses.” The Zip-Facebook service is still in testing, with the roll-out to start initially with Facebook’s prepaid advertisers. This marks the second big collaboration for Zip Business, which launched back in August to offer lines of credit to SMEs on eBay.

4 types of finance to get your business back on track for 2021

Thursday, 26 November 2020

After a tough year for many businesses, things are looking up at long last. New data from the Australian Bureau of Statistics (ABS) show that revenue rose for 24% of businesses this month. Indeed, with more Australians now out and about, Christmas could present a great opportunity for your business to boost its sales even further so you can start off the new year strong and in the green. “One in five (22%) businesses indicated they have capital expenditure plans over the next three months, with about three quarters (73%) of these businesses expecting to spend the same or more than what is usual for this time of year,” ABS’s head of industry statistics, John Shepherd said. Whether you’re looking to purchase more supplies or build out your digital presence to attract online shoppers, having extra funds at the ready could make all the difference over this busy holiday season. That’s when an alternative non-bank business loan comes in. With applications that take just minutes and funding in 24-48 hours, these business loans are an easy way to secure the finance you might need over summer. With that said, there are a number of different loan options out there, some of which might suit your business needs better than others. Scroll down for four types of business finance to help you get the ball rolling for December …

Farmers flock to apply for business loans as 82% of NSW declared drought free

Friday, 20 November 2020

After years of misery, the drought spell may finally be breaking for New South Wales, with 82% of the state now declared drought free .But farmers aren’t just rejoicing with a celebratory dance in the rain. New research shows they’re also using this good fortune to fast track their business’ growth. For one, there’s been a surge in agribusinesses buying new farming equipment to prepare for this year’s crop season. The value of business loans lent out for agricultural machinery is up by over 100% in NSW since this time last year, according to figures released by the Commonwealth Bank today. “We’re seen asset finance for ag machinery, particularly tractors and harvesters, increase significantly,” Commbank’s executive general manager of regional and agribusiness, Grant Cairns said. “Across the country, new asset financing for tractors is up 119% - the highest volumes we’ve seen in the past three years, and financing for harvesters is up 108%.”Cairns said those huge percentage jumps aren’t surprising, given how many incentives farming businesses have right now to invest. “Nationally, farm values are up, commodity prices are holding firm, interest rates are at record lows, seasonal conditions have been good, there is strong consumer and retail demand for fresh produce and there’s Government incentives like the instant asset write off scheme,” he said. For context, the instant asset write-off (now extended till 30 June 2021) allows businesses earning up to $500 million per year to claim immediate tax deductions on multiple asset purchases - capped at $150,000 each. This means the write-off would be able to cover ‘big ticket’ items like tractors and harvesters, giving farmers the opportunity to shave off a chunk of their 2020/21 tax bill.RELATED: Small business loan approval sits at 70%: how to apply for yoursThinking of making an investment for your own business? If you need a hand funding your next piece of machinery, get started with one of the equipment finance options below.

Get your invoices sorted before Christmas: How a business loan can help

Thursday, 19 November 2020

As 2020 comes to a close, the time is ripe for businesses to tie up loose ends, including any unpaid invoices, and to get cashflow ready for the holiday season.There might also be a resurgence in sales to prepare for, as research from Westpac and the Melbourne Institute shows consumer sentiment soared to a seven-year high this month. With this in mind, you may want to have extra funds ready in your back pocket just in case you need to buy more stock or hire more employees. “In these turbulent economic conditions, the ability to anticipate demand can be difficult - even at Xmas, which is traditionally a busier season for retail and other upstream industries,” business lender Octet’s head of marketing, Duncan Khoury says. “Invoice finance (otherwise known as debtor finance) can be useful by giving you quick, painless access to the funds tied up in your unpaid invoices, which are often business’ biggest untapped asset.”So if your slow-paying customers still haven’t responded to your nudge on their shoulders, invoice finance could be a great alternative solution. This type of business loan is secured against your outstanding business invoices, granting you up to 85% of your invoice amount upfront (you receive the rest, minus any fees or charges, once your customer pays). That way, you won’t be left high and dry if, say, you’re a wholesaler and new orders suddenly come in from a whole bunch of retailers. Approval speeds are also quick with online lenders like Octet, helping you stay ahead of the end-of-year rush. You may only need to wait 24-48 hours before you can start withdrawing funds from your invoice finance facility.Ready to compare your invoice finance options? We’ve made it super easy for you by rounding up a few eye-catching deals offering fast and flexible funding to Australian businesses.

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