Shopify Inc., a provider of essential internet infrastructure for commerce, has today launched the rollout of Shopify Capital in Australia to provide quick and easy funding for up to $2.5 million AUD to help merchants accelerate growth, expand to new markets, and prepare for the peak sales season.

This is the time of year when Aussie merchants prepare their business for the upcoming peak sales season — ordering inventory, planning campaigns, sorting shipping and hiring talent. Though, timely access to funding to make these investments is one of the biggest challenges for entrepreneurs. 

While 62% of Australian merchants are comfortable seeking funds to invest in their business, two-thirds (67%) are deterred by high-interest rates and more than half (53%) are turned off by lengthy application processes and timeframes. 

Traditional lenders often require business owners to apply through lengthy and complex processes. Shopify Capital isn’t traditional financing. There’s no lengthy application process, and Shopify does not do personal credit checks, take equity in the business or ask merchants for cash flow projections. 

“We couldn’t be more proud to support Australian businesses with everything they need to build strong brands for customers here and around the world,” said Shaun Broughton, APAC Managing Director, Shopify. 

“At the same time, Australian businesses are concerned about the increasing cost of capital, inflationary pressures impacting margins, and declining consumer confidence impacting sales. Shopify Capital is remitted only when a sale is made, so Australian merchants can be confident that they can afford to invest in their businesses.”

Shopify merchants receive offers up to $2.5 million AUD through the same Shopify platform they already use to run their store. Shopify Capital has experts that review the data-informed and machine learning models to ensure merchants receive the funding they need to help grow their business. Once approved, funds are deposited in as little as two business days for merchants to use how they choose for their business, with most investing in talent, inventory and marketing to maximise growth or bridge cash flow during seasonal dips. 

Funding through Shopify Capital is repaid through future sales, where remittance is success-based rather than time-based. As merchants make sales, they repay based on an agreed fixed percentage of daily sales, so payments flex with their business — lowering cash flow risks by removing the uncertainty of compounding interest rates and hidden fees.  

Tracey Jewel, Manager at Batherapy, is a clear example of growth achieved through Shopify Capital. Boosted by two rounds of funding through Shopify Capital, Tracey expanded her business from selling online-only DIY bath kits to creating in-studio bath and body product workshops across Perth.

“Access to funding has traditionally required business owners to jump through hoops for something that should be quite easy. Now we can quickly access funding through the same platform I already use to run my business and don’t have to think about repayments as they’re automatically made as a portion of each sale,” said Tracey.

“The first round of funding helped to quickly boost supplies to support the opening of our first studio space in inner-city Perth, and we’ve since repaid the first round and accessed an additional round to fast-track the opening of three new studios across the city.”

Since launching in 2016, Shopify Capital has provided more than $3.8 billion USD in funding to tens of thousands of US, UK and Canadian entrepreneurs — a 90% increase in total funding in the past 15 months. This funding has been vital as businesses look to accelerate growth, with merchants that received funding through Shopify Capital averaging 36% higher sales in the following six months compared to their peers.

A new survey has found that most retailers in Australia are optimistic about the economic conditions and potential for business success in their own States, despite the current economic climate. At least two thirds of businesses believed their State had good pro-business laws, good consumer spending appetite and good economic conditions.

Leading parcel delivery company CouriersPlease (CP) commissioned a survey of an independent panel of 202 Australian retailers[1] to uncover whether the conditions in their State are conducive to business success. The full survey results, including breakdowns across State and business size, can be found here: couriersplease.com.au/portals/0/Top-States-For-Business-White-Paper.pdf

Specifically, 82 per cent of respondents revealed laws in their State make it easy for them to do business and don’t inhibit their success, while 69 per cent were confident the consumer or business markets in their State have an appetite for spending. Nearly two-thirds (64 per cent) of respondents believe the economic conditions in their State are healthy.

CP analysed the results within each State. When asked whether the laws in their State make it easy for business in general, Western Australia and Victoria came out on top. Eighty-eight (88) per cent of WA businesses and 86 per cent of Victorian businesses said yes, followed by 72 per cent in Queensland and 57 per cent in South Australia.

When asked whether customers in their State have an appetite for spending, retailers in each State were similarly optimistic, with Victoria, NSW and Western Australia coming out on top. Three quarters (75 per cent) of NSW retailers said yes, followed by 71 per cent of West Australian retailers, and 63 per cent in Victoria.

Surprisingly, sentiment on each State’s economic conditions was also positive, albeit generally lower than other survey responses. More West Australian and NSW retailers view the economic conditions in their State as healthy, at 76 and 71 per cent respectively, compared with Queenslanders (at 64 per cent), Victorians (at 46 per cent), and South Australians (at 36 per cent).

Richard Thame, CEO at CP, says: “Our survey results suggest businesses understand their State Governments have put in place legislation that supports their success, and consumers have the appetite to ensure their success. Therefore, it may be the ideal time to establish a new business.”

The survey also reveals that Western Australia is the most promising State for business success. While all States offer varying forms of business support on offer, Western Australia is continuing its Tenant Rent Relief Scheme for small businesses[2] and Victoria has also continued to offer wage subsidies of up to $20,000 for businesses hiring employees from groups most affected by the pandemic.[3]

Respondents were also asked whether they would recommend new businesses, regardless of whether they were retailers, establish themselves in their State. The majority of retailers (80 per cent) said they would.

Despite their outlook on the economic conditions in their State, 73 per cent of retailers in Victoria said they would recommend new businesses establish themselves in the State. Eighty-eight (88) per cent of NSW retailers, 79 per cent of those in Queensland and 76 per cent in Western Australia also echoed this sentiment.

Richard says the research is good news for individuals looking to start a business. “The results show that we should be encouraged to establish new businesses, and that most well-established organisations feel confident to continue operating and growing.”

Richard adds that those looking for maximum support and quicker success in a new business should look to join a franchise. “Franchise businesses enable new franchisees to secure sales straightaway by leveraging the benefits of national marketing programs, established business systems and technology solutions. In challenging conditions, franchise businesses provide ongoing support for their network of small business owners.”

“At CP, for instance, we provide our Franchise Partners with technologies to help them find the fastest delivery routes, helping them save on costs and time. We provide them with an already-established customer base from day one, along with comprehensive training and marketing support so they can earn an income as soon as they start.”

“We have expanded our network with hundreds of new Franchise Partners during the pandemic, and are continuing to expand. Whilst we’ve launched a national recruitment program, we are focussing our attention on Western Australia and Victoria, areas that our survey highlights as promising for business success.”

The full survey results, including breakdowns across State and business size, can be found here: couriersplease.com.au/portals/0/Top-States-For-Business-White-Paper.pdf

[1] CouriersPlease surveyed business owners and senior decision makers across different organisation sizes, from 1-10,000+ employees.

[2] WA Government, smallbusiness.wa.gov.au/coronavirus/grants/tenant-rent-relief

[3] Jobs Victoria, jobs.vic.gov.au/help-for-employers/jobs-victoria-fund

Small businesses in dispute with financial service providers lodged 3,490 complaints with the Australian Financial Complaints Authority (AFCA) in 2021-22, down 3 per cent on the previous year.

Those that succeeded in their complaints secured more than $18 million from financial firms in compensation and refunds.

Small business complaints accounted for about 5 per cent of the more than 72,000 complaints the ombudsman service registered overall last financial year. The remainder came from individual consumers.

About 13 per cent of small business complaints involved financial difficulty, down from 19 per cent the previous financial year, AFCA’s Lead Ombudsman for Small Business, Suanne Russell, revealed today.

“Lower levels of hardship complaints in 2021-22 in part reflect the work the banking sector has been doing in recent years to support customers in difficulty. A further fall in financial difficulty complaints involving small business would be welcomed by everyone, but we are concerned we may see an increase given the end of COVID government support and the current economic environment.

“Higher interest rates may also make that a challenge in the current year but we hope lenders will continue to step up. AFCA will closely monitor the impact of higher rates in complaints from customers in the small business sector.”

Business loans topped the list of most commonly complained about products in 2020-21. Just over 40 per cent of small business complaints – about 1,440 disputes – were to do with loans.

The top 5 most commonly complained about products also included business transaction accounts (800 complaints), commercial property insurance (276) business credit cards (201), and loss-of-profits or business interruption insurance (200).

The top 5 issues were service quality (389), failure to respond to a request for assistance (282), interpretation of product terms and conditions (271), denial of an insurance claim (204) and default listings (198).

AFCA provides an independent and impartial financial complaints resolution service that is free for small businesses and consumers.

Ms Russell said she was pleased to see that more than a third (36%) of the complaints that small businesses escalated to AFCA were resolved at the earliest stage of its process, when AFCA refers a complaint back to the financial firm for further consideration.

“AFCA welcomes early resolution at this stage – as long as the outcome is fair for both parties – because it takes away uncertainty for small businesses,” she said.

If early resolution isn’t possible, AFCA continues to work with the parties to try to help them reach an agreement through processes such as conciliation. Failing that, one of its ombudsmen, or a panel of decision makers, will make a determination. This is a decision that is binding on the financial service provider if it is accepted by the complainant.

Nearly half (47%) of small businesses’ complaints were resolved within 60 days of being lodged with AFCA, though more complex cases took the average time to closure to 112 days (about three and half months).

Just over 10% of small business complaints progressed to a formal decision in 2021-22.

AFCA has now helped to secure nearly $80 million in compensation and refunds for small business complainants since starting operation on 1 November 2018. It has registered more than 14,800 complaints from small businesses in that time.

Whether in the office or remote, work is becoming more dispersed, increasing the demand for networking technologies like wireless document scanning solutions to enhance collaborative productivity in fast-paced business environments. As a result, Epson has launched the DS-790WN wireless network colour document scanner with built-in versatile connectivity.

Designed for reliability and ease of use in a wide range of industries such as government, service bureaus, higher education, finance and healthcare, the DS-790WN delivers high-quality scans at fast speeds so businesses can confidently manage documents.

The demand for efficient document management and seamless integration into workflows continues to grow; thus, the need for network scanners has never been more apparent. The newest addition to Epson’s award-winning document scanner portfolio, the DS-790WN, comes equipped with robust features, including network connectivity and an intuitive touchscreen panel so businesses can easily scan and share high volumes of documents PC-free.

The DS-790WN delivers high-quality scans up to 45ppm/90ipm¹ with a peak daily duty cycle up to 7,000 sheets², one-pass duplex scanning and a high-volume 100-page ADF that accommodates business and ID cards and sheets up to 21 cm by 610 cm.

Built to support collaborative workgroups, the DS-790WN includes a 4.3″ colour LCD touchscreen and built-in LAN and wireless connectivity to easily access multiple scan jobs or scan to a USB drive, e-mail, network³ or cloud storage services^4,5 such as Dropbox®, Evernote®, and Google Drive™^4,5 without the need for a computer.

With seamless compatibility with most existing document management systems, the DS-790WN features integrated TWAIN and ISIS® drivers and include OCR software to easily create searchable PDFs and customisable Office documents.³ 

Users can also scan with mobile devices using the Epson Smart Panel® app⁸ on iOS® or Android™.

DS-790WN Availability and support

The DS-790WN (RRP $1,349) is available now at www.epson.com.au and through all authorised Epson resellers. With industry-leading support, Epson commercial document scanners include a 12-month limited warranty.

For more information, go to: https://www.epson.com.au/products/scanner/WorkForceDS-790WN.asp?groupid=98

Key features of the DS-790WN

• Speed – 45 ppm / 90 ipm scan speed, with ultrasonic double feed detection technology to assure fast and productive scanning

 • Connectivity – USB 3.0, Wi-Fi, Wi-Fi Direct, Gigabit Ethernet

 • ScanWay standalone scanning – scan directly to network, cloud, email or USB stick with no PC required.

Australia’s beef and sheep meat market can expect continuing demand from China despite its slowing economy and continued lockdowns impacting how the country consumes animal proteins.

Speaking on a newly-released podcast, Is the Chinese meat market still firing?, Rabobank’s Hong Kong-based senior animal protein analyst Chenjun Pan said China’s lockdown policies have affected the population’s protein consumption habits, with the major short-term change being where people are consuming food.

“In the past, banquets played an important role in rural areas and smaller cities. Because of the lockdowns, the banquets have disappeared, and the number of business events and dinners have also declined,” she said.

However, Ms Pan said, Chinese consumers are continuing to consume animal protein at home and via food delivery – with food delivery services having grown steadily in China through the pandemic.

“The emergence of food delivery services is having a heavy impact on the traditional food service sector in China,” she told the podcast.

The trend of “convenience food” was also growing in the Chinese market.

“The categories of ready-to-eat, ready-to-cook and ready-to-heat type convenience foods are booming,” she said.

Ms Pan said while it was very difficult to predict Covid policy in China, she was not expecting to see any changes in the next three months.

“If Covid policies remain unchanged, the Chinese food service sector will continue to be negatively impacted. When there is a lot of uncertainty, people do not want to take risks and do not wish to travel, gather in large groups or eat outside of their homes,” she said.

Protein consumption is expected to increase in quarter four though, Ms Pan said, which is the Chinese “high-season” for the animal protein market – “when consumers typically eat more meat during the colder months” – with prices tracking higher with this increased demand.

Chinese retail meat market

In terms of retail prices in China, Ms Pan said, the pork sector had seen the most volatility, relative to other animal proteins.

“Presently beef and sheepmeat retail prices are relatively stable – sitting at historically high levels. When compared with the international market, Chinese beef and sheepmeat retail prices are still very high,” she said.

“These high prices, despite a slowing Chinese economy, reflect that the consumption of animal proteins, particularly beef, is quite resilient.”

Ms Pan said in terms of Chinese per capita consumption volumes, beef and sheepmeat remain very low and are not among the major proteins consumed in the country.

“The fact beef and sheepmeat fall into a niche market may be protecting them from the negative impacts of the slowing economy,” she said.

Meat Market Outlook

If the country’s economic slowdown continues, Ms Pan said, Chinese consumers may start spending less on luxury products and travel, which means they will have “more money in their wallets” to invest in better quality foods with a greater variety.

“Premium food service will come under some pressure from the slowing economy – while mid-market food service and retail sectors will remain resilient,” she said.

Australia

For Australia, Rabobank senior animal protein analyst Angus Gidley-Baird said, China’s Covid policy had impacted Australia’s red meat exports to the country, reflecting the changed consumption patterns

“For the first six months of this year, Australian lamb exports to China dropped by 30 per cent compared to last year,” he said, while Australian mutton exports to China were up by 11 per cent for that same period.

Ms Pan said the drop in Australian lamb exports to China and the increase in mutton exports reflects how the Chinese food service sector has declined significantly in the first half of the year – driven by the lockdowns.

“Lamb imports mainly go towards the food service sector, particularly high-end food service, such as premium hot-pot restaurant chains, while mutton, as a lower-priced protein, is consumed by the mass market in traditional sheepmeat-consuming regions of the country, particularly in northern China,” she said.

“We’ve seen the lockdowns really impact lamb consumption, but mutton consumption has been protected as it has a little bit of a wider market, including food service and retail.”

Beef consumption has seen some shift from food service to retail since the beginning of the pandemic, Ms Pan said, and this trend is expected to continue in 2022.

She expects beef imports into China to remained stable.

Mr Gidley-Baird said Australian beef exports to China have been tracking at similar levels to last year, “but that’s a reflection of Australia’s ongoing low production volumes. The Australian 2022 beef export volumes are still 39 per cent behind what Australia exported to China in 2020”.

Small business owners are planning a holiday to restore their wellbeing, saying leisure travel improves their business decision-making capabilities

American Express Business Class research explores personal travel’s wellbeing and business benefits. This is particularly important as challenges continue to mount on Australia’s small business community in light of inflation, supply chain pressures, labour shortages and the continued volatility surrounding COVID-19.

47% of Australian small business owners say their mental health and wellbeing have suffered as they couldn’t take time off for a holiday during the pandemic. Similar to just how critical recharging one’s batteries is, findings reveal that 77% of small business owners say personal travel positively impacts their outlook and ability to run their business.

American Express Business Class research key findings include:

• 63% of small business owners believe personal travel helps them make better business decisions.
• 66% agree they feel rejuvenated after a holiday and consequently take fewer sick days off work.
• They also feel more relaxed (60%), happier (57%) and more energised (53%) when returning to work.
• 53% say that after a leisure trip they return to work feeling more productive or inspired.
• 72% say personal travel enables them to bring fresher thinking to their business, which helps them innovate and grow, with 26% citing increased creativity.
• Personal travel momentum is building, with 87% planning at least one domestic holiday this year or next. 68% of small business owners are planning an international trip.

Kiely Potter, Vice President, SME Account Development, American Express says: “Taking a holiday is one of the few ways small business owners admit that they can fully switch off from the pressures of running a small business. With personal travel back on the agenda, taking a holiday is critical in helping to replenish small business owners’ sense of wellbeing and productivity. It offers a fresh perspective they can inject back into their business. Supporting small businesses at their best is a key component to reinvigorating our economy and communities.”

Dan Gregory, behavioural researcher and strategist and Founder of The Behaviour Report, says: “Taking a break is vital for mental health and wellbeing and sadly, this isn’t something Aussie small business owners have generally been able to do over the last few years. While some small business owners may think there’s too much on their plate to step away at the moment, they should consider taking a trip, not only for their own wellbeing, but for the business benefits that will come from the time off. When thinking about the drivers that move us and lift us, travel helps us relax and detach; it stimulates our senses in new ways, allows us to connect and, just as importantly, to separate ourselves physically and emotionally from the day-to-day grind of our work. This puts small business owners in a better frame of mind when they return to work, helping them to spot opportunities, tackle challenges with a fresh perspective and be better set up for success.”

Leah Cameron, owner of Marrawah Law says: “As the owner of a busy legal firm, I value break-time and during the pandemic that simply didn’t exist. For me, getting away somewhere is the only time I can really down tools and refocus. Your mind just stops and you can broaden your thinking beyond the day-to-day. I always try to go to new and challenging locations, as this is where I can completely reset. Immersing myself in different cultures makes my brain think differently. It inspires me to do the same when I return to work.”

Dan adds: “Small business owners are definitely aware of what they’ve missed by not taking a holiday: the loss of connection and inspiration and the effects this has had on their mental wellbeing and outlook towards their business. There’s something in Australians’ nature that drives us at a cultural level to travel and explore to make us the best versions of ourselves. Even increasing costs, rolling delays and cancellations seem preferable to the idea of not travelling at all.”

While business travel continues to grow healthily, travellers may have another potential disruption to be on guard for: the rapid rise of flu and COVID cases that are expected to peak in the coming months. A leading travel management company shares six tips for businesses looking to protect from travel disruption – and their budget.

Tom Walley is the Global Managing Director at Corporate Traveller, Flight Centre Travel Group’s flagship travel management provider for SMEs. He says: “The rapid increase in travel bookings among Corporate Traveller customers confirms businesses understand the value of doing business face-to-face. Certain activities, such as site inspections, sales meetings, M&A meetings, product demonstrations and training, simply cannot be done well virtually.

“Business travel is here to stay, but now businesses need to get smarter at minimising disruptions. The new wave of COVID cases and rumours around the reintroduction of some restrictions tells us we are still in the middle, rather than at the end, of the pandemic. The flu is also back and we can’t afford to become complacent. While it requires more forward-planning and can be challenging to navigate updated medical advice, there are ways to take to the skies seamlessly. Many of our own customers in industries such as medical, mining and construction continued essential travel through last year’s lockdowns and restrictions with minimal disruptions.”

Below, Tom offers his advice for businesses to help minimise travel disruption and continue travelling this winter.

6 ways to minimise travel disruption

1. Understand what your travel insurance covers. Good travel insurance will offer cover for overseas medical expenses plus cancellation, amendment, and additional expenses if a traveller contracts COVID-19 during their trip and is hospitalised or forced into quarantine or isolation. Business travellers should ensure they understand the detail of the cover and who to contact if they need help. This is critical, especially hospital admission for COVID-19, which can cost an average of USD$42,200[[1]] in the US.

The best travel insurance providers offer 24/7 assistance and claims support and can recommend accredited medical facilities and hospitals around the globe. They also augment their cover with online tools to check the latest COVID-19 travel information and advice for destinations including COVID-19 risk and infection levels and entry and quarantine requirements.

Tom encourages businesses to do their due diligence and shop around to find a policy that offers the most extensive domestic and international cover amid the current environment.

2. Minimise infection risks by strategically selecting executives to travel. Having an employee become unwell during travel and unable to continue can cause major disruptions, with substantial rescheduling and insurance administration to follow. Companies can minimise infection risks by flying executives who have recently recovered from COVID or the flu or are up to date on their vaccinations. Sending executives with good immunity can also mitigate risks for clients. The COVID reinfection period was recently updated from 12 weeks to four. Despite testing requirements being scaled back, businesses would be wise to have measures in place around testing prior to travel to minimise the risks as much as possible.
3. Have back-up travellers on standby. With COVID and flu cases rising, travellers risk infection up to the day of their departure. Businesses could consider having executives in place who can be ‘subbed-in’ to cover a business trip, to avoid major disruptions. This way, important meetings and activities can continue without the need for cancellations or rescheduling. A good business travel insurance policy should cover the costs involved in replacing an employee, including the cost of any ticket changes or additional accommodation requirements to replace a traveller who cannot complete the trip due to medical reasons.[2]
4. Boost ‘travel confidence’ among hesitant employees. A proportion of travellers may still be concerned about potential risks when travelling. Taking them through the company travel policy and risk mitigation strategy could increase their confidence. It may be worthwhile for businesses to conduct regular employee surveys to gauge any concerns and questions. Business could also consider allowing hesitant executives to ease back into travel with short domestic trips before they return to long-haul travel. Assigning travellers with an emergency contact for advice can also help ease fears.
5. Keep informed on destination requirements and restrictions. Travel rules change regularly, with each country and state implementing their own rules. For instance, vaccination status or negative COVID tests are still required for entry to some countries such as Hong Kong and Japan. Singapore has continued its requirement for non-vaccinated travellers to show proof of SGD30,000 COVID medical cover. Businesses should keep up to date on the rules in relevant destinations, communicate these with their travellers and support their travellers in meeting the rules. The easiest method of doing so is to have a system in place that updates executives on rules in real-time. Businesses can assign an employee to this information-gathering role or onboard a travel management company that is equipped with the technology and support to help companies stay abreast of requirements and even rising COVID cases in certain destinations to minimise disruptions.
6. Plan for luggage-related risks. Airport staff shortages, increased demand for travel, and some flight disruptions have led to a recent increase in misplaced luggage. While most luggage is recovered, it is important for businesses to plan for potential mishaps and ensure executives can move seamlessly in and out of airports. Businesses could encourage their travellers to take on carry-on luggage only, if possible. If check-in luggage cannot be avoided, travellers could ensure the most essential items are packed in their carry-on luggage, including a business outfit for their next meeting.

[1] Institute for Healthcare Policy and Innovation, 2021: ihpi.umich.edu/news/patients-hospitalized-covid-19-year-could-pay-thousands-dollars-study-suggests

[2] CoverMore. 2022. p.56