Financially affected by COVID -19? Communicate with your Bank as help is there

Unchartered territory is a phrase we’re hearing in the broader community from our clients, business partners and family and friends at Mazars. Not to diminish the health impacts to our community, ultimately the broader financial implications of COVID-19 is expected to be unprecedented across the economy. In anticipation of clients needing financial assistance, Mazars has reached out to the mainstream banks to seek an understanding of likely assistance to our fellow Australians during these challenging times.

Our recent enquiries reveal that a number of Australian banks are preparing to provide a range of financial assistance measures designed to help Australian consumers and businesses during the COVID-19 outbreak. These measures may be available to customers immediately and likely to remain in place for customers who are financially affected by the COVID-19 outbreak.

Feedback from the four banks we’ve spoken to date indicated that Home Loan and Business Loan Customers affected by COVID-19 may receive financial assistance in one form or another, including:

  • Deferral of payments for up to 3 months;
  • Extension of lending term of up to 3 months;
  • Deferral of Equipment Finance payments for a period of time on a case by case basis;
  • Fee free redraws;
  • Lending can be restructured without establishment fees;
  • Access to term deposit funds without reduction in interest rate and break fees; and
  • Access to credit card limit increases.

We anticipate that there will be a high level of demand for assistance from the Banking system as the impact of COVID-19 is prolonged and Banks will also be operating in the new COVID-19 business environment.

We recommend that if you foresee financial difficulty in your business, it is best to act early by:

  • Assessing the likely impact of your personal or business situation:
    • How, when and why will you be impacted;
    • What plans do you have in place to combat that; and
    • What support do you anticipate needing from the Bank to assist during the crisis.
  • Arming yourself with this information:
    • Contact your business banker for Business Loans; and
    • Call the Bank’s contact centre and speak with a Home Loan Specialist.

If you would like assistance in this regard, please contact your usual Mazars adviser or speak with Owen Dingle or Angela Winton in the Finance and Consulting Team at Mazars.

Brisbane

Melbourne

Sydney

+61 7 3218 3900

+61 3 9252 0800

+61 2 9922 1166

 Published: 18 March 2020

Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.

All rights reserved. This publication in whole or in part may not be reproduced, distributed or used in any manner whatsoever without the express prior and written consent of the Mazars, except for the use of brief quotations in the press, in social media or in another communication tool, as long as Mazars and the source of the publication are duly mentioned. In all cases, Mazars’ intellectual property rights are protected and the Mazars Group shall not be liable for any use of this publication by third parties, either with or without Mazars’ prior authorisation. Also please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.

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