Australian Banking Association Small Business Relief Package
The spread of the COVID-19 coronavirus has seen the serious and continuing impact on the Australian economy.
Due to this, many businesses are under considerable financial strain at the moment and are weighing their options. This is often particularly the case with small to medium-sized enterprises and businesses (SME).
To assist businesses during this time, on the 20th March the Australian Banking Association announced the Small Business Relief Package.
Small Business Relief Package details
The basics of the package are;
- Deferral of loan payments for up to 6 months.
- Fast track approval processes.
- For small and medium businesses with less than $3 Million total debt.
- No lump-sum payments at the end of the deferral period.
Whilst these measures will provide greater options for affected businesses, there are other factors worth considering. These are;
- Smaller lenders may exercise the relief measures on a case-by-case basis.
- Some relief measures may only be provided on a month-by-month basis.
- Additional interest may accrue during the payment deferrals.
- A small administrative charge may apply.
- Deferments may show on live credit reports as “Under arrangement”.
- The relief measures can be subject to change or review at short notice.
Finance Equipment can help you access any support available through your lender. We can help provide relevant information to allow you to make suitable decisions for your specific circumstances.
We hope that yourself and your family, friends and colleagues stay safe over the coming weeks.
Additional relief package information
For further information on relief measures being implemented, please also see;
- Increase to the Instant Asset Write-Off support package.
- Backing Business Investment Government support package.
The original article from the Australian Banking Association can be found here.