With COVID-19 restrictions and lockdowns continuing to batter small businesses, the NSW Government have introduced a grants package and changes to the Dine & Discover program.
While lockdowns have meant many businesses cannot produce income, it certainly hasn’t stopped their expenses from continuing. These businesses are struggling to keep their heads above water, so the idea of the grants is to keep them afloat long enough through these trying times so that they won’t have to permanently shut their doors once we go back to business as usual.
COVID-19 Support Package
Small Business COVID-19 Support Grant
Monetary grants of up to $10,000 will be available to eligible businesses depending on their decline in turnover.
To be eligible for this grant, the business or sole trader must have an ABN registered in NSW or prove that they primarily operate out of NSW, have fewer than 20 full-time equivalent employees, and have an annual turnover between $75,000 and $1,200,000 as of 1st July 2020.
The grant amounts are as follows:
- $10,000 for a decrease in turnover of 70%
- $7,000 for a decrease in turnover of 50%
- $5,000 for a decrease in turnover of 30%
Hospitality and Tourism COVID-19 Support Grant
Similar to the Small Business Grant, tourism and hospitality businesses will be eligible if their ABN or physical location is in NSW, they have a turnover of more than $75,000 and Australian wages expense of less than $10 million as of 1st July 2020.
Dine & Discover Vouchers
NSW residents over the age of 18 can get four $25 vouchers to spend at eligible food or entertainment venues. The vouchers are designed to get people spending money at local hospitality businesses.
The expiry date of the vouchers has been extended to 31st August 2021, and they are able to be used for takeaway when the cafe or restaurant are directly delivering the order.
COVID-19 Grants and Support for Other States and Territories
If you’re in a state or territory other than NSW, there may be other forms of assistance available to you.
Have a look at the information relevant to your state to see if you qualify.
Other Ways Your Business Can Survive Financial Hardship
Reduce business expenses
If you’ve been thinking about finding more efficient, affordable ways of operating your business, now is the time to do it. Have a look at all of your business expenses and start by contacting your providers to ask for a better deal. It’s very common for utility providers and other creditors to give you a discount when faced with the possibility of losing you as a customer.
If your creditors aren’t open to giving you a discount, shop around!
Don’t stop marketing
With many people facing lockdown and working from home, it may be wise to think about redistributing your marketing budget to areas such as online, as people are spending more time on devices. Still, it certainly isn’t the time to stop marketing altogether as you’ll need people in your sales funnel for when business as usual resumes.
While it probably isn’t wise to stop your marketing, it’s an excellent time to reassess your strategy to ensure your message is still relevant and finding your audience in the right place. You may need to get creative to find a way to take your business online to try to keep sales up.
Keep in contact with your customers
It’s a stressful time for everyone, not just businesses. So there’s a good chance many of your customers are facing financial hardship too. Now is the time to focus on exceptional customer service and communication. Reach out to your customers to see how you can help. Offering flexible payment terms is one solution that may be helpful to them. Customers will appreciate the exceptional service, and their loyalty will be strengthened.
When income is scarce, and expenses are plentiful, your cash flow position can quickly go from positive to negative. With negative cash flow, a business doesn’t have long before it can no longer continue trading.
If you are experiencing issues with your cash flow, invoice finance might be the solution you need to get you through these challenging times.
If you provide a good or service to your customers and then issue an invoice for payment, we might be able to help! Invoice finance works as a line of credit extended to your business based on the value of your accounts receivables. We can turn your customers’ unpaid invoices into cash.
If you'd like to learn more about invoice finance with Earlypay, please do not hesitate to contact our friendly team on 1300 760 205 or contact your broker or BDM — we’re more than happy to help!