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The Business Advisory Blog

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Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents.  Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

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Business Finance Guarantee Scheme

Written by Greg Millar on August 26th, 2020.      0 comments

Business Finance Guarantee Scheme

Small and medium-sized businesses may be eligible for the business finance guarantee scheme to support operating cash flow disrupted due to COVID-19.


bankThe scheme supports banks to take on lending with the government taking on the default risk of up to 80% of the loan.

Criteria to simplify and expand the scheme was announced on Thursday 20 August 2020, this included the following: 
  • A maximum amount of $5 million under one or more loans (your bank will determine your maximum loan amount within this amount)
  • A maximum loan term of five years (your bank will determine maximum loan term)
  • The scheme is open for applications until 31 December 2020.
However, one of our clients commented that if you borrow an amount of $50,000 or less they found it was a quick and simple process. Over this amount and you will be required to provide financials, budgeted cash flows or other supporting information required by your bank.

Talk to your bank to discuss your financing needs and if you are eligible for credit using the Business Finance Guarantee.

Criteria to simplify and expand the scheme was announced on Thursday 20 August 2020, this included the following: 
  • A maximum amount of $5 million under one or more loans (your bank will determine your maximum loan amount within this amount)
  • A maximum loan term of five years (your bank will determine maximum loan term)
  • The scheme is open for applications until 31 December 2020.
However, one of our clients commented that if you borrow an amount of $50,000 or less they found it was a quick and simple process. Over this amount and you will be required to provide financials, budgeted cash flows or other supporting information required by your bank.

Talk to your bank to discuss your financing needs and if you are eligible for credit using the Business Finance Guarantee.

Please reach out to our team via emailwebsite, Zoom or phone us on +64 9 520 9200. Many people already deal with us exclusively via these methods and have experienced no service change. We are very confident in working remotely and welcome any enquiries you may have.
 

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