As the initial 6-month loan repayment deferral program comes to an end, the Australian Banking Association has indicated more than 900,000 [1] loans were deferred.

Banks will assess businesses with loan deferral arrangements in place during September and October.

These assessments will determine outcomes for three options:

  1. Whether the business can resume payment
  2. If the business is still in difficulty and needs to partially repay the loan or restructure or vary the loan conditions for a further period of time which may include granting a further 4-month deferral or alternatively extending the term of the loan; and
  3. Identifying those customers who are unable to repay their loan over a longer term and offering assistance to address their needs.

In each of these scenarios, it’s likely business owners will need advice.  This will include budgeting and cashflow management for business owners those intent to resume loan repayments in full or partial repayments.  For those who are unable to pay loans, advice will be needed for determining the best course of action for your business and you personally as the business owners.

Reference:
[1] https://www.ausbanking.org.au/6-month-loan-assessments-begin-as-australians-resume-loan-repayments/

 

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