A quick note on deferred payments and interest only periods that are being offered by lenders;
If you need to defer payments by all means use it but note that this is not a repayment freebie or holiday from your mortgage.
Interest and repayments that are deferred will be capitalised (added) to your existing loan and that means you will have a higher debt position in 6 months. For those businesses who are deferring a wide range of payments this could create a burden that some experts are estimating will take years for business owners to dig themselves out of.
If you’re not sure what this means for you make sure you get advice before making a decision. That way you’ll know you’re making an informed decision about the best action for you.
#deferredpayments #notafreebie #cashflow
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