Banking Assistance Available
With the introduction of the proposed the wage subsidy solution from the Commonwealth Government, many operators are not in a position to come up with the cash to pay wages until May when the federal funding arrives.
Australia’s banks are indicating that they are supporting the JobKeeper program (updated fact sheet), while employees wait for the scheme to make the first payments, Businesses may be able to use the upcoming JobKeeper program payment as a basis to seek credit in order to pay their employees until the first payment is made.
“As many businesses face a number of weeks of little or no cash flow before they receive payments under the Government’s JobKeeper program, Australian banks may be able to help. “
“Many businesses may be eligible for credit, for example, an extension to their overdraft, which can offer them cashflow to pay their staff, while they wait for the JobKeeper program to make the first payments. Each business will be assessed on a case by case basis to determine the assistance that may be appropriate to their circumstances.
“Businesses affected by the COVID-19 crisis should contact their bank to access these initiatives and discuss what support is available to them including options to defer loan repayments for up to six months,” she said.
ABA CEO Anna Bligh
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