In the current environment, even with many businesses carrying ATO balances, business owners have more credit options from more different providers than ever before – particularly in the unsecured loan market.
However many business owners who were lured in by the speed to settlement and ease of application are now having a tough time with collections teams from some of these lenders who are squeezing cashflow as they’re trying to make up deferred payments.
Unsecured lenders will certainly refinance another lender’s loan so this is one option for those feeling the pinch and needing to renegotiate terms. That said, the short terms create a strain at a time cashflow is tight for many.
The best solution is to run business with low levels of debt but that’s not always possible. Another option; private lenders offer a no doc solution for those with property with payments deferred for 12 months. The benefit of this is that can provide a business owner breathing room while they work on strengthening revenues, improving the ATO position and not have the cash flow pain from an unsecured loan.
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The Commonwealth Treasury has approved the first participating lenders in Phase 2 of the Government’s SME Guarantee Scheme. Key information on Phase 2 of Government