Last Updated: 27/03/2020
As your credit management specialist we are to help your SME business now and over the coming months.
We have assisted with keeping many businesses afloat during the GFC and we are willing and able and waiting to assist your business through the COVID crisis and the following financial crisis. Remember, EC Credit Control was born out of the 1987 share market crash where we assisted many clients due to our knowledge of SME businesses. This also saw a surge with the number of new clients that came into the EC ranks.
To provide you with some useful tips we thought it was a good time to outline some assistance EC Credit Control can provide as well as a summary of what the government is providing businesses to help them get through the current times.
COVID-19 – Available Business Support
|Boosting Cash Flow for Employers (Updated)||Provide up to $100,000 back to businesses including NFPs, with a minimum payment of $20,000. First Payment will be delivered as a credit in the BAS system from 28 April 2020. Additional payment is also being introduced in the Jul-Oct 2020 period.|
|Temporary relief for financially distressed businesses||The Australian Taxation Office (ATO) will tailor solutions for owners or directors of businesses that are currently struggling due to the coronavirus, including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups.|
|Increased and accelerated income support||Expanding eligibility to income support payments and establishing a new, time‑limited Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients of the eligible payment categories. These changes will apply for the next six months and will not be income tested.|
|Early access to superannuation||Individuals affected by the coronavirus can access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. You will be able to apply for early release of your superannuation from mid-April 2020.|
|SME Loan Guarantee Scheme||The Government will provide a guarantee of 50 per cent to small and medium enterprise (SME) lenders for new unsecured loans to be used for working capital. Max. loan $250,000 per borrower.|
The Morrison Government’s business hotline will give more support to small and medium businesses impacted by the COVID-19 pandemic. Operations at the business.gov.au 13 28 46 Contact Centre will increase from five days per week to seven days per week, and provide additional hours of support outside standard operating hours for the first month, answering calls from 7am to 11pm AEST.
The Government also announced measures to assist businesses with the impact of the current economic conditions arising from the COVID-19 pandemic. In summary the measures consist of:
- temporary increases to the threshold at which creditors can issue a statutory demand (from $2,000 to $20,000);
- temporary increase to the threshold at which creditors can initiate bankruptcy proceeding (from $5,000 to $20,000);
- increased time periods for responses to statutory demands and bankruptcy notices from 21 days to six months; and
- temporary relief for directors from insolvent trading liability (although egregious cases of fraudulent or dishonest insolvent trading may still attract criminal actions).
While the markets are responding it will take a little while to filter through to business, but let’s take this opportunity to best position your business for the future now. Get your debts loaded today and we can start working them now.Load Debt Now Sign up with EC Credit Control
Have more questions on your credit management? Contact us here.