Banks are ready to lend. Are you bank ready?
The NZ Government is now backing a $6.25 billion Business Finance Guarantee Scheme to help businesses hit by the coronavirus crisis. Businesses with turnover between $250,000 and $80 million can begin applying for up to three-year $500,000 loans.
Are you bank ready?
Banks will take into account the way the COVID-19 crisis is affecting your business, relative to your performance prior to the lockdown.
The lockdown is expected to last at least another two weeks, maybe longer. In the meantime, you’ll have fixed costs that you need to continue to pay even though you may not be trading at the moment. These are things like rent, vehicle leasing and staff salaries.
The banks still need to understand if each business customer will be able to meet their commitments. Banks don’t want to place people under even more financial stress by lending to customers that don’t have a viable way forward.
How to get ready to apply?
Businesses will have to provide financial projections. You will need to go with a plan on how you intend to last the crisis and get your business back on its feet afterwards.
Our stress test calculator will give show you the areas for your business to focus on to ride out this period of financial disruption and consider different scenarios for going forward.
You will also need to consider:
- A financial review and scenario planning with robust forecasts
- Which customers you are likely to keep
- Supply chain continuity
- Operations and capacity planning
- Smart use of technology to drive performance and manage risk
- Prioritise risks
- Develop a 90 day action plan
Fully funded COVID-19 support
To get bank ready, Smetric is approved to provide a registered service “COVID-19 Cashflow Management and Business Support”. This funding is provided by the Government for 1:1 advice in a range of areas that are impacting businesses, up to $2,000+GST.
To start the process, register on the Regional Business Partner Network Click Here. Then contact us for next steps.
Under this support scheme our team of skilled business experts are available now to help you get bank ready. (Our team can be found here.) They have a mix of senior financial and operational experience and are accustomed to working with businesses under stress in order to get the best outcomes.
For further information or a quick chat, email [email protected] or call 09 522 4938 or 021 951 076