Experiencing financial difficulties and need advice and help negotiating with your Bank/Landlord/Creditors or Suppliers?
If you are facing unmanageable financial impacts due to the COVID-19 pandemic, there are practical ways your bank, creditors, landlords and governments can assist you and your business to manage cash flows and restructure financial commitments.
Financial difficulty means you are unable to repay what you owe and are experiencing unforeseen challenges meeting your repayment obligations due to circumstances out of your control, such as a pandemic like COVID-19. The circumstances may be just COVID-19 related, or may have exacerbated other problems.
Banks have dedicated hardship teams which help individuals and businesses make arrangements to cover the time between when your circumstances change and when you can re-commence repaying your debts. In the majority of cases, temporary support can help businesses and individuals through the tough times. The assistance available will depend on your financial circumstances, but may include:
- Deferring or reducing loan or rental repayments;
- Restructuring and consolidating loans or adjusting payment plans;
- Altering loan repayments to interest only;
- Waiving fees and charges.
The Federal and State Governments have each announced packages designed to:
- Prompt landlords to deal reasonably with rent defaults arising out of the COVID-19 crisis;
- Provide cash grants to businesses, through credits paid when Business Activity Statements are lodged;
- Provide fortnightly payments to employees through the Job Keeper program, to subsidise wage costs;
- Provide low interest loans of up to $250,000 to assist businesses to meet expenses and wage costs during the crisis;
- Provide payroll tax and electricity cost relief; and
- Prevent creditors from bankrupting individuals and liquidating companies for up to 6 months.
BUT YOU MUST ACT PROACTIVELY
In our experience, using a third party intermediary will help to clarify options, enlist the necessary support and unlock available assistance more efficiently. Our experienced team has a proven track record.
When considering the type of assistance that might be appropriate, 3rd parties will assess the situation on a case-by-case basis and consider your specific circumstances. Knowing what you are entitled to and presenting the relevant information in an organised and coherent way will allow 3rd parties like banks and landlords to understand your position and offer appropriate assistance. This is one of the respects in which our experienced team can assist.
HOW DO I SEEK ASSISTANCE?
If you are experiencing hardship due to the effects of COVID-19 and you want help unlocking your financial options and negotiating with your bank, feel free to contact us by telephoning our office on (07) 3220 2929 or emailing email@example.com.
Access a link to our team members here www.plastiraslawyers.com
Ben Sindel is a Consultant and leads the Dispute Resolution team advising SMEs on all areas of business disputes, risk management and commercial litigation. Ben is also a nationally accredited mediator