Repayment relief options for business explained
Is your business losing revenue because of COVID-19? You might be eligible for repayment relief. Find out your options and how it might help you.
COVID-19 has left many businesses facing financial uncertainty - but there’s help available. We have a range of repayment relief options for customer to help ease your financial pressures, whether you have a business overdraft, loan or credit card with us.
In the video below, Chris Brell, our State General Manager for SME Banking in NSW and ACT, outlines how repayment relief works in more detail. Watch to find out how repayment relief could work for your business. We’ve also summarised some of the key points and links you’ll need under the video.
If you’re worried about your business, know that you’re not alone. Two thirds (66%) of Australian business report that turnover or cash flow has reduced as a result of COVID-19. And if you’re one of those affected, we're here to help.
Whether you need help keeping employees employed longer or managing cash flow, it’s worth checking your different relief options.
To help as many businesses as possible, we’ve introduced a range of repayment packages, including interest rate reductions on overdrafts and cash-based loans, merchant terminal rental fee refunds and a deferral on business loan and credit card repayments for six months. You can see the full list of options available in our .
Westpac customers can apply for a deferral on their payments through our online form. If you apply and your application is approved, it means you won’t make repayments on your business loan/s for six months – your deferred repayments will start on your submission date and be applied from May 2020. You can see a full list of FAQs about payment deferral on our COVID 19 hub.
It’s helpful to find out if you’re eligible for repayment relief before filling out the online application form. It’s important that your business meets the necessary criteria, which will depend on your business size, operations and which product you’re using. Our full list of support measures and associated eligibility can be found on our COVID-19 site for businesses.
After you’ve sent us your application, we’ll send you a confirmation email within 24 hours. If your application is approved, we’ll then email you all the relevant details and information you’ll need to know about your repayments.
With the current financial uncertainties, we understand that you may want to cancel any direct debits while your application is in progress – this may cause some delay so it’s a good idea to hold off while we work as fast as possible to help you.
Similarly, we’ll also refund any repayments you make before your application is approved and apply it to your new loan balance.
The good news is that these uncertain times cannot last forever. Once your deferred repayment period is over, you’ll then start making repayments on the new balance of your loan using your pre-nominated repayment process, like direct debit. We’ll extend your loan term by at least six months to account for the higher loan balance.
This is a challenging time for many businesses. In the meantime, we’ve put together a guide for the options available to keep cash flowing during COVID-19.
Each businesses’ circumstances are different, but you may also want to look at our guide to options that may cover cash flow shortfalls.
This information does not take into account your personal circumstances and is general. It is an overview only and should not be considered a comprehensive statement on any matter or relied upon. Consider obtaining personalised advice from a professional financial adviser and your accountant before making any financial decisions in relation to the matters discussed in this article, including when considering tax and finance options for your business.