Banks & Borrowing
Unsecured Business Loans
Recently the Government announced that they were working in co-operation with banks to provide unsecured loans up to $250,000 to be used as working capital.
Government are guaranteeing repayment of 50% of the loan, however there are some conditions:
- Loans are for 3 years
- Maximum amount of $250,000
- This is a cashflow loan – it is unsecured so no assets are required to support the loan
- It is still subject to the banks credit assessment processes
- Government prefers that this is a draw down facility so that you only draw down on what you need
- You must apply by 30 September 2020
It is important to note that you should only apply for what you think you will need, you will be required to pay back any monies you have borrowed.
To apply, you will need to contact your bank.
The Government has relaxed “responsible lending obligations” for lenders for the next 6 months, for all applications of new credit, or extensions of existing credit.
The Government has also provided more funds into the lending system, along with the Reserve Bank reducing interest rates.
Banks are in negotiation with the Government and initiatives include:
- Deferring loan repayments
- Waiving fees and charges
- Helping with debt consolidation
- Waiving penalties for early withdrawal of term deposits
- Deferring credit card payments and increasing emergency limits
To take advantage of these options, please contact your bank.