Business across Australia have been devastated by the effects of COVID-19. Either forced to close by Government orders, closed to protect the health of staff and customers or seeing a significant decrease in business activity. Many of our equipment finance customers have reached out to us asking for direction in regard to relief for repayments on their equipment finance loans.
As equipment finance brokers not lenders, we are not authorised to issue support or relief on behalf of any bank or lender. Through our contact with many of our lenders, we have assessed that individual lenders and banks are applying their own set of policies and support for equipment finance loans with many assessing individual loans on an individual needs basis.
From our contacts and research we have managed to compile some information to assist you with navigating the COVID-19 support scene and provided you with links to some banks to apply for repayment relief.
How to Seek Equipment Finance Repayment Relief
- If you are facing difficulties meeting your equipment finance repayments due to the impact of COVID-19 on your business, we recommend you immediately access your lender’s website for specifics around their individual relief policies.
- We’ve observed that most banks and lenders have already set-up dedicated websites for the coronavirus support measures. Many mention equipment finance specifically, while for others equipment finance will be included in their business finance/loans section.
- The most common relief being offered for business by lenders for equipment finance loans is deferment of loan repayments.
- The contact details for your lender should be displayed on their webpage. The phone lines are likely to be very busy so it advisable to contact the lender via email if possible.
- In your contact email, ensure you include your full contact details; your equipment finance loan account number; state that you are seeking COVID-19 support; give a clear indication of the size of your business in terms of turnover so the lender can assess if you are eligible for any special small business relief; if possible, outline the percentage decrease in turnover you are experiencing as a result of COVID-19; request the deferment period you are requiring, be that 3 months or the usual 6 months.
- The lender should be able to assess your request and respond with details of the support you have been granted.
- Each loan may require separate applications. If you have several equipment loans with the same lender, include the individual details of each one, ie account number, in your email.
Business Support Information
- The Federal Government, state and territory governments, local councils, banks and lenders and many other authorities have announced a range of different support measures for business in relation to COVID-19.
- Jade Equipment Finance is accredited with many lenders and banks and each has their own approach to delivering repayment relief. There is not a general or large-scale generic response that we can report though most lenders tend to be offering a 6 month deferral on business loans including equipment finance. Some are extending overdrafts.
- If you are not familiar with finance terminology we emphasise that there is a clear difference between deferment of payments and waived payments.
- A deferment is putting off payments or delaying them to be paid at a later date. The financial obligation on your equipment finance still exists. You may be given a repayment holiday for 3-6 months but then you will be required to resume your payments at the fixed repayment level.
- Interest may still apply to the loan over the deferred period. Subject to individual lender policies.
- As opposed to deferment, a waiver infers that the fees, charge or payment has been forgotten or forgiven and no financial obligation exists. This does not usually apply to equipment finance loans but may apply to some fees and charges by a range of organisations.
Contacts for Equipment Finance Lenders
To assist yo u in sourcing relief for your equipment finance repayments, we have gathered contact details for some of the major banks. If your lender is not listed here, please go direct to their website and search for COVID-19 support. It should be easy to find.
If your equipment finance loan is with the CBA, go to https://www.commbank.com.au/latest/coronavirus.html?ei=hp-ban-cvp-default-coronavirus for information on support.
If you have an equipment loan with Westpac, go to https://www.westpac.com.au/help/disaster-relief/
If your equipment finance is with ANZ, head to https://www.anz.com.au/support/covid-19/ for further information.
Macquarie Bank is offering support to its business customers, it can be found at https://www.macquarie.com.au/financial-assistance/coronavirus-support.html
Assistance from Government
To review what COVID-19 assistance you are entitled to from the Australian Government, go to https://treasury.gov.au/coronavirus/businesses
Search your relevant state or territory Treasury site for local support packages.
Go to our blogs for information on instant asset write-off and other measures which we will be posted at regular times..
At Jade Equipment Finance we’ve moved to work from home arrangements but will be providing continuity of service throughout the COVID-19 crisis.
DISCLAIMER: THE INFORMATION PROVIDED SHOULD BE USED AS A GUIDE ONLY. ALL INDIVIDUAL LOANS AND ARRANGEMENTS WITH SPECIFIC LENDERS SHOULD BE MADE DIRECTLY. JADE BOAT LOANS IS NOT IN A POSITION TO PROVIDE SPECIFIC ADVICE ON ANY SPECIFIC EQUIPMENT LOAN.