In line with the Federal Government’s assistance for Coronavirus-affected businesses, the major banks have also revealed their relief packages.
If your salon is experiencing significant financial loss, speak to your bank, using the below as a starting point.
Businesses that have taken out term loans of up to $10m can pause repayments for up to six months. Interest run-up during the period is capitalised. Overdraft increases are available, and when it’s up and running in early April, business customers with turnover of up to $50 million a year will be eligible to borrow up to $250,000 under the federal government’s loan guarantee scheme. The scheme will offer a six-month deferral of loan repayments, with interest accrued during the period capitalised.
The bank will automatically halt repayments between April and June on loans to small businesses which have borrowed up to $5 million. A further deferral is available if required. Interest run-up during the period will either be capitalised or due at the end of the loan period, depending on the type of loan.
CBA says other help available includes waiving merchant terminal fees, early redraw fees on business term deposit accounts, and establishment fees and excess interest on temporary excess products.
Repayments on business loans can be paused for up to six months, while business credit card repayments can also be deferred. Eftpos terminal rental can be waived for up to six months and loans are available through the small business loan guarantee scheme.
Businesses that have borrowed a total of up to $10 million can defer repayments for up to six months. Interest is capitalised, and Westpac is also offering to lend money under the small business loan guarantee scheme on the same terms as the other banks. The establishment fee for equipment finance loans has been cut to zero until the end of June, and fees businesses pay to have eftpos terminals in their stores will be refunded for up to three months.Businesses can get money out of term deposits without the interest rate being cut, while payments on business credit cards have been put off for three months.
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