SME Sales Index

SMEs have been among the hardest hit by COVID-19 as government restrictions, job losses, and consumer confidence have all put downward pressure on sales. GetCapital’s SME Sales Index uses transaction data from a representative sample of small and medium enterprises to get deeper insights into the financial and operating performance of SMEs through the COVID-19 period and into the new economic environment.

The return of uncertainty

  • The SME Sales Index represents a broad spectrum of business sales activity across the country and works to paint a picture of SME health during the COVID-19 pandemic.
  • After heavy falls (~25%+) during the early stages of the pandemic, the index bounced back and looked to have normalised at ~20% below pre-crisis figures. However, with the convergence of easing restrictions, EOFY payments, and various government schemes the index briefly jumped back to pre-COVID levels at the end of June.
  • Since the EOFY bump, sales have slipped back to a ‘new-normal’ range ~20% below levels at the start of the year. 

Industry impact has not been uniform

  • The impact, much like the expected recovery, has not been uniform across industries. Data suggests the recovery will could be K-shaped with a divergence based on business quality and responsiveness.
  • The EOFY bump was heavily pronounced across Construction, Manufacturing and Wholesale with a subsequent decline quickly following in the new FY for both Manufacturing and Wholesale.
  • The SME Construction sector continues to defy a COVID turndown as it remains ~40%+ up from the end of January, while Manufacturing joins Fitness and Recreation at the other end of the spectrum, at ~40% below the start of the year.

Victoria’s economic divergence is taking hold

  • Victoria continues to experience week-on-week declines as the index falls below the lowest levels of the first lock-down period. The index has now dropped ~40% from its EOFY peak, just before the second lock-down came into effect.
  • Victoria’s index continues to trail the rest of the country, but with a narrowing gap currently 15 points below other states.

SME Savings Report

Methodology

The index is calculated by taking a representative sample of businesses from around the country (varied by size, industry, and location) and looking at their credit transactions across all account types (e.g., transaction, savings, credit card). The index has been baselined to the start of the crisis and uses 6 months of average sales as the dominator. SMEs included in the index have all been in operation for over three years and have average yearly sales of $1.5 million.

Bank Connect

GetCapital uses Bank Connect, a proprietary technology that leverages transaction bank data to facilitate faster credit decisions and make business finance simpler and frictionless for our partners and customers. Bank Connect allows bank statement data to be retrieved in encrypted form, adhering to the highest levels of data protection and security.
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The report has been prepared for information purposes only without taking account of the objectives, financial situation or needs of any individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice. All material presented in this report, unless specifically indicated otherwise, is under copyright to GetCapital. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior written permission of GetCapital.