Business loan repayment deferrals are expiring

TIME TO TAKE STOCK!

Hey, advisor! How many clients do you have with deferred mortgage and loan repayments?

At the start of this pandemic, the Prime Minister spoke about the concept of businesses hibernating. I must admit that I was sceptical about its legitimacy. After all a business is not like an animal that can store a lot of energy to then hibernate for winter. A business has customers, suppliers, relationships that must be maintained, and often debt that eventually needs servicing.

JobKeeper seems to have bridged some of the gap for payment to employees. Obviously what JobKeeper has not done is assisted with other operating costs, particularly rent and any finance debt. The 'mandatory code of conduct' for commercial tenancies assisted affected SMEs to get rent reductions and a hold on evictions from their landlords, but government assistance was never designed to help with repayments and other creditors.