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 (30%+) 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 July.
  • This jump was short-lived and seems to have been linked to EOFY. Since EOFY, the index has dropped over 20% and been adversely impacted by the increased restrictions in Victoria.

Industry impact has not been uniform

  • The EOFY bump is heavily pronounced across Construction (up 16%), Manufacturing (up 45%), and Wholesale (up 24%) 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 20%+ up from the end of January.
  • The Accommodation and Food sectors have halted their recoveries (down ~40% on the end of July) with increases in the number of COVID cases adding to the reluctance of consumers to eat out or make holiday bookings.
  • Gyms continue to recover, in part driven by their membership-based business model, the resumption of fees and latent demand.

Victoria’s economic divergence is taking hold

  • In Victoria, which didn’t benefit from the EOFY bump as much as other states, the second wave of restrictions and lockdowns is starting to have a dramatic economic impact.
  • Victoria’s index is currently 14 points below the rest of Australia and could continue to slip with the lock-down of all non- essential businesses.

Closing the SME revenue gap

The effectiveness of JobKeeper Payments

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.
Learn more.

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