Key to enduring challenging times, like the COVID-19 crisis, is the ability to conserve cash. By preserving business and personal financial viability, you will be far better placed to recover upon the reawakening of the economy, which is inevitable. How can you do that?
As part of a suite of simple measures proposed by our banks, for business and individuals affected by the crisis, you can now:
- Take advantage of reduced interest rates
- Apply for deferral of your principal payments for up to six months, on the reduced interest rates
- Have your overdraft extended, if needed
- Apply for the 50 per cent government guaranteed financial package (worth up to $250,000), if your business can use it productively.
The last thing a business needs at this time, coming into a weaker economy, is to be saddled with more debt and obligations so, when considering these banking measures, ensure you have both:
- Considered the ‘criticalness’ of the debt for survival both during the crisis, and for revival after the crisis, and
- Ensured that the debt can be serviced long term, as part of a viable operation.
By taking advantage of the banks’ support measures, as well as other stimulus measures like JobKeeper payments and the cashflow boosts, businesses should be better placed to hunker down, conserve cash, and defer obligations, until trading can resume.
Here is an overview of the key measures now on offer by Australian banks, with links to their application forms.