Business Banking news and advice

All the latest business banking news and top tips to help stay up to date on business banking trends and products.

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

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

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.

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Get your invoices sorted before christmas how a business loan can help

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

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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Small business loan approval sits at 70 how to apply for yours today

Small business loan approval sits at 70%: How to apply for yours today

Despite COVID-19 slowing down activity in many industries, the business loans market has remained busy throughout 2020. For over 250 days now, Australian banks have approved more than 500 loan applications from small-to-medium enterprises (SMEs) a day. This is according to the latest data from the Australian Banking Association (ABA), which shows a whopping total of $41 billion has been lent out to SMEs and sole traders between 1 February and 7 October. ABA’s chief executive, Anna Bligh said that with the loan approval rate sitting at 70%, it’s clear Australian banks haven’t left struggling small businesses behind. “Australian banks are continuing to provide a lifeline to small and medium businesses across the country. The rate of lending has held up strongly despite the pandemic,” she said. “The banks’ commitment to small business has been supported by a number of Government and regulatory measures, including the RBA’s Term Funding Facility, changes to business lending rules, the instant asset write-off, and the SME loan guarantee.”These figures come after the federal government announced plans last month to scrap ‘responsible lending’ laws in order to further reduce red tape around accessing credit. The proposed shift from the current practice of “lender beware” to a “borrower responsibility” principle would essentially allow lenders to rely on the income and expense information provided by borrowers, helping to speed up the loan approval process. Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said she supported the proposal as a step towards loosening unrealistic serviceability rules for small businesses. “We are aware of small businesses that have been asked for all sorts of documentation by the banks - even for loans that have been 50 percent guaranteed by the Federal Government - including director guarantees, which really means the family home. It’s no wonder small businesses owners are reluctant to borrow,” she said. “Importantly the banks will still be accountable to ASIC [Australian Securities and Information Commission] and the Government has pledged greater protections for vulnerable borrowers.”

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Fintech archa to launch new neo business credit card

Fintech Archa to launch new neo business credit card

Ever heard of a neo business credit card? Say hello to Melbourne-based fintech Archa.  This week, Archa announced that it has become a principal issuing member of Mastercard, meaning it can access the card providers leading global payment network. The partnership will allow the fintech to launch its new neo business credit card along with an app with innovative tools to help businesses manage their expenses.  “This is a really important strategic milestone for Archa. We’re thrilled to have the support of Mastercard as a critical foundation to our business model,” Archa’s chief executive, Oliver Kidd said. “We look forward to working closely with Mastercard over the coming years to support small businesses throughout the region.”

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Sme loan guarantee scheme which businesses have been approved and will you fit the bill for phase two

SME Loan Guarantee Scheme: How many businesses have been approved, and do you fit the bill for phase 2 and 3?

With phase two of the government’s SME Loan Guarantee Scheme in full swing and phase three just released, businesses across Australia now have plenty of opportunity to access cheaper funding to boost their cashflow. Under the first phase, the government guaranteed half of all unsecured three-year business loans of up to $250,000. But under phase two which is set to run until 30 June 2021, the loan terms have been extended to five years, and loan amounts increased to $1 million, with 39 lenders including the Commonwealth Bank and ANZ participating in the scheme. Phase three, known as the SME Recovery Loan Scheme, has also begun as of 1 April 2021, with the caps for loan amounts and loan terms once again raised to $5 million and 10 years. Treasurer Josh Frydenberg said more than 35,000 business loans - over $3 billion of the planned $44 billion - have so far been provided to small to medium-sized enterprises (SMEs) under the scheme.And with over 350,000 businesses now left without JobKeeper payments to cover staff costs, even more may jump on board and apply for a government-backed loan.

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What financial support is my business eligible for after the 2020 budget

Post 2020 Budget: What financial support is my business eligible for?

For small businesses across Australia this may have been one of the most important federal budgets yet. On top of extended coronavirus stimulus packages like JobKeeper, the 2020-21 Budget was a ray of hope that more financial relief would be rolled out to help companies and the economy recover from the current recession. So what exactly is the federal government pledging to deliver to support small to medium-sized enterprises (SMEs) through this period? From tax offsets to a new wage subsidy program, there’s lots in the pipeline to watch for. In fact, businesses are set to receive $31.6 billion in tax breaks - almost twice as much as households. But unlike households, the business tax incentives are only temporary, with an aim of encouraging more investment in jobs and ‘big ticket’ items (like new equipment and machinery) over the next few years. Read on for a snapshot of budget support measures for your small business:

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Grameen microfinance business loan offers low income aussies a way out of crisis

Grameen microfinance: business loan offers low-income Aussies a way out of crisis

As job losses and pay cuts become the new norm for Australians, the question of how to earn a sustainable income has never been more pertinent. But what are your options beyond relying on government stimulus or payday loans which charge exorbitantly high fees? Global microfinance group Grameen has stepped in to offer low-income Aussies another way forward: setting up your own small business. Microfinance refers to small amounts of working capital that are provided to borrowers, typically excluded by mainstream lenders. These loans are backed by social collateral, which means each group of borrowers is collectively responsible for making sure their members meet their repayments.Grameen Australia’s chief executive officer, Adam Mooney says Grameen has a legacy of helping countries and communities out of crisis and its expansion to Australia in the coming months will aim to do just that. “We’re seeing Jobkeeper and Jobseeker being tapered off, so we want to be there at the right time in the right place to be able to provide the incentives to work but also the opportunity to work for many millions of people,” he says. While Grameen began in Bangladesh in the 1970s, its success in reaching 130,000 women in the US over the past decade has proven that its microfinance model can also be applied to “so-called developed countries”. The idea behind Grameen’s model is that it acts as a springboard for entrepreneurs to build up their business and become self-sustaining.“We want to be an enabling financial actor rather than a permanent fixture,” Mooney says.“The ideal scenario for each business is that it generates sufficient return, that it can grow itself and doesn’t need to continually come back for additional loans.”Mooney says the model especially complements Australia’s migrant and Aboriginal and Torres Strait Islander communities who “have got great skills and an aspiration but haven’t had that sort of investment capability to be able to start their own businesses.” For example, Grameen’s group formation structure lends itself well to the principles of collective wealth and collective identity that are culturally familiar to Indigenous people.

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Small businesses reveal what s hurting their recovery

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.”

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New commbank platform promises business loan in 20 minutes

Need a business loan? New CommBank platform promises funding in 20 minutes

In the business world, not everyone has the luxury to wait for extra finance. Luckily if you need that cashflow boost ASAP, whether to purchase stock or pay your suppliers, Commonwealth Bank may have a solution. This week, the big bank launched a new online platform that promises to give its customers access to business loans in near real time. With BizExpress Online, eligible CommBank small business customers can apply for loans of up to $50,000, via their Netbank or the CommBank app. Once an automated lending decision has been made, funds will arrive in their account in as little as 20 minutes. According to CommBank’s business banking group executive, Mike Vacy-Lyle, BizExpress Online builds on an earlier product that was introduced to speed up the lending process.“When we launched ‘BizExpress’, the aim was to provide a simpler and faster lending experience for our small business customers, with same day decisions and funding within a week,” he said. “Our latest investment in the new digital version makes it even easier and quicker for our customers to get the financial support they need.”Right now, BizExpress Online is only available with business lending under the government’s SME Loan Guarantee Scheme. Under the first phase of this scheme, 50% of all new three-year unsecured business loans of up to $250,000 issued by participating lenders until 30 September 2020 will be guaranteed.“Small businesses need quick access to cash flow to keep them going through these tougher times - and BizExpress Online aims to provide them with this,” Vacy-Lyle said. This funding also comes with waived fees over the life of the loan and deferred repayments for the first six months.CommBank expects BizExpress Online will be expanded to other non-scheme loans and products in the coming months.

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