HOW SA BANKS ARE HELPING YOUR BUSINESS THROUGH COVID-19
This is a trying time for most business and now more than ever, all parties should work together. South African banks have come to the party with their debt relief measures to assist businesses during this period. Apart from keeping their doors open during this period as an essential service, they have created programmes to help businesses. These are some of the interventions they have put in place:
FNB
FNB launched a programme called COVID-19 Cashflow Relief aimed at providing relief to individual and business FNB customers whose financial stability has been impacted by COVID-19 pandemic. The interventions will be executed in phases, with the first assisting those clients who demonstrate sound banking behaviour, such as having honoured their repayments to the bank consistently before COVID-19.
What relief can my business apply for?
For qualifying customers, all COVID-19 interventions will be for all products and will be available for three months, covering the following:
- instalment cashflow relief, during which part or no instalments/repayments will be due for a specific period
- a preferential interest rate will apply to the COVID-19 relief interventions given
- no fees will be charged for any relief granted
- assistance with processing credit insurance claims, where possible
- individualised bridge facilities for those who need it
Apart from its own programme, FNB has also partnered with SAFT (South African Future Trust), a fund available to businesses with employees to extend assistance to employers for their employees during COVID-19.
Where do I access this fund?
The relief measures are accessible from the bank’s COVID-19 site
ABSA
From 1 April 2020, ABSA’s corporate and business clients were offered solutions based on their unique requirements and operations under the COVID-19 Payment Relief Plan.
What relief can my business apply for?
For retail clients, the ABSA relief programme incorporates a three-month payment holiday and allows customers to reduce their monthly repayments.
This means that should you be an ABSA business banking client, you will have the opportunity to either continue paying if you are in a position to pay reduced instalments by agreement with the bank or to defer payments for three months. Relevant contracts will be adjusted by revising the loan period and capitalising interest during the relief period.
Does my business qualify?
To qualify for this relief,
- your account must be in good standing; and
- you must be financially impacted by the pandemic.
Where do I access this fund?
The relief measures are accessible from the bank’s COVID-19 site
Nedbank
Nedbank has committed to offering individual solutions to cashflow challenges due to the coronavirus; however, they do not have a confirmed opt-out relief policy for a specific category of accounts and or customer.
What relief can my business apply for?
Nedbank has undertaken to consider assisting any of their loan agreement customers impacted by the COVID-19 pandemic Nedbank have stated that this support could take the form of:
- deferring your repayments (or part thereof) for a suitable period
- extending your existing loan repayment period (the term) or
- extending further loans to you to manage short term cashflow shortfalls
Furthermore, it was announced that the minimum repayment on all Nedbank credit card products had been automatically reduced to 2,5% of your current balance for the next 3 months. Typically, credit card minimum repayments are set a 5% of your current balance.
Apart from its own programme, Nedbank has also partnered with SAFT (South African Future Trust), a fund available to businesses with employees to extend assistance to employers for their employees during COVID-19.
Where do I access this fund?
The relief measures are accessible from the bank’s COVID-19 site
Standard Bank
Standard Bank was one of the first banks to respond with their planned interventions during this period. They have several measures in place.
What relief can my business apply for?
For qualifying customers, all COVID-19 interventions will be covering the following:
- Business loans instalment relief for three months
- Personal loans instalment relief for SME owners for three months
- Trade and payment solutions for importers and exporters
Apart from its own programme, Standard Bank has also partnered with SAFT (South African Future Trust), a fund available to businesses with employees to extend assistance to employers for their employees during COVID-19.
Where do I access this fund?
The relief measures are accessible from the bank’s COVID-19 site
Please keep in mind that banks are still banks; they are not in the business of issuing grants. The relief measures are designed to help you stay afloat for a while, and they will come at a future cost so be careful to read the fine print before adding that signature.
We are still open for business, and if you need our assistance during this period, please contact us here.
