Small businesses innovate to beat challenges of 2020
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While 2020 has been a tough year for small businesses, a whopping 92% still hold high hopes for the future, new research shows.
According to the Amazon Launchpad Innovation Report released this week, a strong sense of resilience has underpinned this optimism.
For one, 28% of small to medium businesses (SMBs) said they turned the COVID-19 shutdown period into an opportunity to innovate.
Among the SMBs who embraced innovation, some found new revenue streams (27%) or launched online as an eCommerce business (23%); while others created products (17%) or transformed existing ones (18%).
A further 35% of respondents said isolation gave them a chance to review and revamp their business plans, while 38% said it helped them focus more on creativity.
These findings were based on surveys with over 1,000 SMBs.
Innovation hurdles
However, the report also found that on a practical level, some challenges stand in the way of businesses making strides to innovate and adapt.
“More than a quarter of SMBs (29%) said that the lack of available funding is the biggest barrier to innovating or growing the business for the remainder of 2020 and more than half (55%) lacked guidance and mentorship during this time,” Amazon Australia’s head of Launchpad, Chadd Ciccarelli said.
Launchpad is Amazon’s platform for Aussie startups, entrepreneurs and SMBs to sell cutting-edge products to consumers. And it’s now offering five grant packages, each worth over $80,000 AUD (including $20,000 in cash and access to mentors), to help address those concerns around funding and support.
As for why small businesses need that extra capital, respondents listed the following as their top reasons: growing digital presence (15%), expanding into the overseas market (15%), staffing (15%), creativity (11%), and eCommerce (10%).
More ways to access business finance
Besides Amazon’s grant, there are also other ways for Aussie SMBs to get their hands on funding as they look to innovate or transition back into ‘business as usual’.
Seek help from the government: Depending on which state your business is operating in, you may be eligible for a recovery grant. In NSW , government grants range between $500 to $3,000, and aim to assist with expenses such as temporary physical changes (like plastic barriers at checkouts), staff training and counselling, cleaning services, and digital solutions (like eCommerce or business websites). Meanwhile, in VIC , where coronavirus cases have resurged and Stage 3 lockdowns have been reimposed for Melbourne, affected businesses can apply for a one-off $5,000 grant.
Consider a business loan: Business loans are another handy way to obtain additional working capital to cover costs like stock and staff wages. Bear in mind, there are various types of loans to fit different business needs. For instance, while a line of credit is better if your SMB has an uneven cashflow, a term loan makes more sense if you already know how much you’re going to need upfront.
Compare unsecured business loans
Business+ Unsecured Loan
Borrow up to $50,000 without using your assets as security. A fixed interest rate means your repayments don’t change over the life of the loan. Apply in minutes with Business+ online or the Business+ app. Get your money fast and efficiently. $20k minimum loan amount.
Interest Rate
Upfront Fee
Funding Speed
Rates range from 11.95% p.a. to 22.95% p.a.$495VariesBusiness+ Unsecured Loan
Borrow up to $50,000 without using your assets as security. A fixed interest rate means your repayments don’t change over the life of the loan. Apply in minutes with Business+ online or the Business+ app. Get your money fast and efficiently. $20k minimum loan amount.
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $20,000
- Maximum loan amount
- $50,000
- Minimum loan term
- 1 year
- Maximum loan term
- 3 years
- Minimum trading
- 1 year
- Minimum annual turnover
- $75,000
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Upfront fee
- $495
- Ongoing fee
- $20 per month
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- Early Payout Costs apply during fixed rate period.
- Other fees
- -
- Early repayments allowed
- yes
- Repayment frequency
- Fortnightly, Monthly
- Repayment types
- Principal & Interest
- Redraw allowed
- no
- Other benefits
- -
- Other restrictions
- -
Read reviews and learn more about Great Southern Bank business loans
Unsecured Business Loan
Business Loans from $5,000 to $5,000,000 with high approval rates. Access to funds on loans up to $500,000 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 $5,000,000 with high approval rates. Access to funds on loans up to $500,000 in as little as 3 hours. Cash flow friendly repayments and open minded offers.
- Loan type
- Loan
- Security type
- Unsecured
- Minimum loan amount
- $5,000
- Maximum loan amount
- $5,000,000
- Minimum loan term
- 3 months
- Maximum loan term
- 1 year
- Minimum trading
- 4 months
- Minimum annual turnover
- $144,000
- Application speed
- 10 Minutes
- Approval speed
- within 1 hour
- Funding speed
- from 3 hours
- Upfront fee
- 3%, starting at $399
- Ongoing fee
- no
- Late payment fee
- $50.00
- Transaction fee
- -
- Early repayment penalty
- no
- Other fees
- -
- Early repayments allowed
- yes
- Repayment frequency
- Weekly, flexible
- Repayment types
- Principal & Interest
- Redraw allowed
- no
- Other benefits
- Daily repayments available.
- Other restrictions
- Fast Business Loans for amounts up to $500,000 are funded in 3 hours, Small Business Loans can take 24 hours.
Boost Business Loan
Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.
Interest Rate
Upfront Fee
Funding Speed
On applicationDetails on applicationFrom 24 hoursBoost Business Loan
Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.
- Loan type
- Loan
- Security type
- Secured or Unsecured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 6 months
- Maximum loan term
- 3 years
- Minimum trading
- 1 year
- Minimum annual turnover
- $120,000
- Application speed
- From 24 hours
- Approval speed
- From 24 hours
- Funding speed
- From 24 hours
- Upfront fee
- Details on application
- Ongoing fee
- $0
- Late payment fee
- -
- Transaction fee
- -
- Early repayment penalty
- -
- Other fees
- -
- Early repayments allowed
- -
- Repayment frequency
- Weekly
- Repayment types
- -
- Redraw allowed
- -
- Other benefits
- 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
The good news is, the government’s SME Loan Guarantee Scheme is still up and running until 30 September. Under this scheme, the government guarantees 50% of unsecured business loans of up to $250,000 from participating lenders, so accessing extra finance should be much easier for small businesses.
Ready to get started? Scroll down below for a list of unsecured loans, or jump over to our business loans comparison table for even more options.
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