COVID-19 Australian Bank Assistance
25 March 2020
Darren Stacey , National Leader, Finance Solutions
Executive Director, Debt Advisory |
As the impacts of COVID-19 continue to escalate, and the scope of challenges flow into the broader economy, the banks in Australia are rolling out larger support packages for their clients.
Industries are now feeling impacts across the board. Successfully navigating through the crisis will require businesses to engage with key stakeholders early, before the financial impacts leave little to no options.
Key stakeholders include your bank, creditors and the Australian Tax Office (ATO).
Most banks in Australia have offered a range of assistance options. While all the banks have advised that tailored assistance will be considered on a case-by-case basis, the following table outlines the specific areas they are offering help.
| Business Customers |
ANZ |
CBA |
NAB |
WBC |
BOQ |
Suncorp |
| Defer Payments |
Up to 6 Months
|
Automatic for
April-June then opt-in
for 3 more months |
Up to 6 months |
Up to 6 months for
SME loans <$3m |
Yes |
Yes, up to
6 months |
| Interest Rate Relief |
Yes, by 0.25% on
top of previous
announcements
|
Yes, by 0.25% |
2.0% cut on new
loans / overdrafts for
SME,
1.0% cut for existing
loans |
2.0% cut on all
overdrafts,
1.0% cut for SME |
|
No increases |
| Extension of loan term |
|
|
Up to 3 months |
Up to 6 months |
|
|
| Restructuring & consolidating loans |
|
|
Case by case |
Case by case |
|
Case by case |
| Breaking term deposits without rate / fee impact |
Yes |
Yes |
|
Yes |
Yes |
Yes |
| Deferred Business Credit Card payments |
|
|
Yes |
Yes |
|
|
| Business financial counselling access |
|
|
|
Yes |
|
|
| Merchant terminal fee waivers |
|
Up to 3 months |
|
Up to 3 months |
|
|
| Additional bank staffing to process decisions |
|
Yes |
|
|
|
|
| Fee Relief |
|
Yes |
|
No establishment
fees for equipment
finance and fee
redraw |
Yes |
|
| Working capital assistance |
Yes, temporary
increases on
overdraft facilities
for 12 months |
Yes, unsecured
lending up to
$250,000 with no
fees / repayments
for 6 months,
or <$50m turnover |
Pre-assessment
for selected
clients for
increases
|
|
Yes, by
arrangement |
Yes |
| Special term deposit rates |
Yes |
|
|
Yes |
Yes |
|
| Personal customers |
ANZ |
CBA |
NAB |
WBC |
BOQ |
Suncorp |
| Defer Payments |
Yes, for 3 months
with an option
to extend for 3
more months
|
Yes, for up to
6 months |
Yes, for up to
6 months,
including a
3 month checkpoint |
Yes, for 3 months
with an option
to extend for 3
more months |
|
|
| Interest Rate Relief |
Yes, by 0.15%
and special fixed
rate available
|
|
Special fixed rates
available
|
|
|
|
| Special arrangements regarding arrears |
|
|
|
|
Yes |
|
| Special Term Deposit Rates |
|
|
Yes |
Yes |
|
|
Note: this list is current as at 23/03/20 based on each bank’s public announcements
Where in doubt, please speak to your bank as early as possible. In many cases, seeking assistance from your existing bank is normally a more sustainable solution (and less expensive) than seeking unsecured working capital loans. If you’re faced with uncertainty regarding your business cash flow and would like assistance to talk about the options for dealing with your finance requirements, our
Debt Advisory team is here to help. We are experienced bankers who can help guide you through your discussions with your bank.
It may be the case that assistance from your bank is only part of the solution and other strategies may be required. We can help guide you to our restructuring experts who can provide assistance in navigating these issues.
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