In order to assist existing small business customers to cope with the impact of the latest set of lockdowns, Westpac has announced eligible businesses can now apply for interest-free overdrafts to help tide them over during the current restrictions.
From today (Monday 19 July 2021), Westpac will offer eligible existing small business customers interest-free temporary overdrafts up to $15,000 on a maximum 45-day term, designed to help bridge the gap to government assistance.
Westpac to offer interest-free overdraft
Westpac CEO Peter King said the bank was aware that the current lockdowns meant some small business owners may need urgent access to cash.
“We have introduced a new interest-free overdraft to act as a bridge to when government payments flow-in, helping small business owners to cover urgent expenses during this time.
“The government’s comprehensive support package will make a big difference to many businesses and help keep Australians employed. The temporary overdraft will support this process and address cash flow needs in the interim, ensuring our small business customers get access to funds sooner.
More Westpac initiatives to help struggling business owners
King said the new initiative adds to the existing financial assistance bing offered by the bank including loan deferrals.
“We want to remind our customers that there is a range of support to help them, and that we have specialist teams at the ready to walk them through the options available,” he said.
Options available to business customers:
- Interest free temporary overdrafts for existing business customers, up to $15,000 for a maximum of 45-days.
- Eligible small business customers with total committed exposure of up to $3m will be able to defer loan repayments for three months on certain products, with loan terms extended as required, to assist with cash flow.
- Eligible small business customers with Merchant Terminal will be able, upon request, to have the merchant terminal rental fee refunded for up to three months.
- Eligible business customers with Term Deposit or Farm Management Deposits will be able to terminate early to access their deposit with no penalty interest rate adjustment.
- Eligible customers may be able to access low interest rate business loans through the Federal Government’s SME Recovery Loan Scheme.
- Case management support for our small business customers experiencing financial difficulty.
- Business loan restructuring with no fees incurred.
- Referrals to financial counsellors or other support services.
The temporary overdraft measure is available to eligible existing small business customers who have Westpac, St.George, BankSA, or Bank of Melbourne as their primary bank, and also have a main transaction banking account with this brand.
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