Small businesses reveal what's hurting their recovery

As small businesses grapple with the uncertainty of operating amid COVID-19, new research shows cashflow remains the biggest barrier to recovery.
For 1 in 3 small business owners, cashflow sits top of mind as their primary worry, according to figures released by business lender Finstro this week.
This is based on surveys with 1,200 Aussie small businesses in July, just before Victoria’s second pandemic wave worsened.
Finstro’s chief product officer, Tom Whitworth said these concerns around cashflow reflect the “payments crunch” that many small to medium-sized enterprises (SMEs) face right now.
That is, there’s a real struggle to balance slow-paying customers with suppliers requesting faster payment times.
“Suppliers, who are rightly concerned about securing payments in this challenging environment are increasingly demanding shorter trade terms and often cash on delivery,” Whitworth said.
“This makes it difficult for small businesses who are looking to order supplies and reinvigorate their businesses after a period of significantly reduced trade or shutdown.”
Business loans: A way forward
So, if you’re concerned about your business cashflow what are your options?
For some SMEs, business loans offer a way forward. They’re a handy way to access extra finance to help kickstart operations again and grow your company in a COVID-safe environment.
But it’s important to note there are many types of business finance and the best one depends on your situation. Read on for a few key options:
Standard business loan
This is a lump sum paid upfront, so generally it suits businesses that have a clear idea of the exact funding they need for purchases like stock or equipment. To cater for different business sizes and purposes, these loans can often range from as little as $5,000 up to $500,000 or more and be borrowed over months or years.
Right now, accessing this option could also be easier, thanks to the SME Loan Guarantee Scheme. Under this scheme, the government is guaranteeing 50% of unsecured business loans of up to $250,000 issued by eligible lenders, until 30 September 2020 (after that, phase two begins where even larger loans will be guaranteed).
Line of credit
But what if your cashflow is uneven and you can’t predict when or how much you’ll need over the coming months?
That’s when a line of credit could be helpful, as it’s an ongoing loan facility that you can draw down upon whenever needed.
The good news is you’ll only be charged interest on the amount you take out. For this reason, a line of credit serves as a great financial safety net, in case further COVID-19 restrictions or challenges disrupt your revenue levels.
Invoice finance
If you’ve got unpaid invoices (or accounts receivables) tying up some of your working capital, then invoice financing could be your go-to.
With invoice finance, you’ll receive a portion of the invoice amount (usually up to 80-95%) from your lender upfront. Then, once your customer’s payment comes through, the rest of the funds will be released to you - minus interest and any fees. So instead of waiting for weeks for your invoices to come through, invoice finance can give you access to that money almost instantly.
Like a line of credit, this option provides you with a drawdown facility.
Your next steps
Once you’ve figured out which financing option is right for your business, it’s time to weigh up a bunch of other features including interest rates, fees and funding speeds.
Scroll down below to start comparing deals today, or jump on over to our business loans comparison page for a more comprehensive list.
Compare 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.
- Interest Rate
- Rates range from 11.95% p.a. to 22.95% p.a.
- Upfront Fee
- $495
- Ongoing Fees
- $20 per month
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- Early Payout Costs apply during fixed rate period.
- Other fees
- -
- 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
- Repayment frequency
- Fortnightly, Monthly
- Repayment types
- Principal & Interest
- Minimum trading period
- 1 year
- Minimum annual turnover
- $75,000
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- -
- Other restrictions
- -
Read reviews and learn more about Great Southern Bank business loans
Prospa Plus Business Loan
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
Interest Rate
Upfront Fee
Funding speed
Interest rates vary based on risk.3.5%from 24 hoursProspa Plus Business Loan
Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.
- Interest Rate
- Interest rates vary based on risk.
- Upfront Fee
- 3.5%
- Ongoing Fees
- $0.00
- Late payment fee
- $0.00
- Transaction fee
- -
- Early repayment penalty
- $0.00
- Other fees
- -
- Loan type
- Loan
- Security type
- Secured
- Minimum loan amount
- $150,000
- Maximum loan amount
- $500,000
- Minimum loan term
- 3 months
- Maximum loan term
- 3 years
- Repayment frequency
- Weekly
- Repayment types
- Principal & Interest
- Minimum trading period
- 3 years
- Minimum annual turnover
- $1,000,000
- Application speed
- 10 Minutes
- Approval speed
- Same-day approval
- Funding speed
- from 24 hours
- Extra repayments allowed
- yes
- Redraw allowed
- no
- Other benefits
- -
- Other restrictions
- -
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.
- Interest Rate
- On application
- 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
- 6 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
- Funding speed
- From 24 hours
- Extra repayments allowed
- -
- 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
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.
- 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
- $5,000,000
- Minimum loan term
- 3 months
- Maximum loan term
- 1 year
- Repayment frequency
- Weekly, flexible
- Repayment types
- Principal & Interest
- Minimum trading period
- 4 months
- Minimum annual turnover
- $144,000
- 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
- Fast Business Loans for amounts up to $500,000 are funded in 3 hours, Small Business Loans can take 24 hours.
Business+ Vehicle Loan
No upfront deposit and no extra security. Fixed rate for the life of the loan giving you cash flow certainty. Quick quotes and apply online in 20 minutes. Balloon payment available. Can be used for new and second-hand vehicles up to five years old that are bought from a dealership.
Interest Rate
Upfront Fee
Funding speed
Rates range from 6.29% p.a. to 16.99% p.a.$0VariesBusiness+ Vehicle Loan
No upfront deposit and no extra security. Fixed rate for the life of the loan giving you cash flow certainty. Quick quotes and apply online in 20 minutes. Balloon payment available. Can be used for new and second-hand vehicles up to five years old that are bought from a dealership.
- Interest Rate
- Rates range from 6.29% p.a. to 16.99% p.a.
- Upfront Fee
- $0
- Ongoing Fees
- $8 per month
- Late payment fee
- $22.00
- Transaction fee
- -
- Early repayment penalty
- Early Payout Costs apply during fixed rate period.
- Other fees
- $100 security administration fee
- Loan type
- Loan
- Security type
- Secured
- Minimum loan amount
- $10,000
- Maximum loan amount
- $250,000
- Minimum loan term
- 1 year
- Maximum loan term
- 7 years
- Repayment frequency
- Monthly
- Repayment types
- Principal & Interest
- Minimum trading period
- 1 year
- Minimum annual turnover
- $75,000
- Application speed
- Varies
- Approval speed
- Varies
- Funding speed
- Varies
- Extra repayments allowed
- no
- Redraw allowed
- no
- Other benefits
- $0 Establishment fee (usually $595) for applications made before 28 February 2025.
- Other restrictions
- -
Read reviews and learn more about Great Southern Bank business loans
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