Deferring business loan repayments

If you have business lending up to a limit of $10 million, you can ask to defer your repayments for six months.

Your business may be eligible if:

  • Your business is impacted by coronavirus
  • You have business lending up to a limit of $10 million
  • Your loans are current and your repayments have been up to date for 90 days prior to your application
  • If you're a landlord of a commercial property, you'll need to provide an undertaking and declare to Bankwest that during the 6 month deferral period you won't terminate any commercial property leases or move to evict any tenants for rental arrears caused by the COVID-19 pandemic.

 

How to apply

You’ll need to opt in to defer your business loan repayments. Our small business customers can call 13 7000 and Relationship Managed business customers can get in touch with their Relationship Manager for more information.

Before you request a deferral

FAQs

1

What is interest capitalisation?

If you defer your loan repayments, the interest will be capitalised. This means that the interest you’d have normally paid during the deferral period continues to accrue and is added to your outstanding loan balance, to be paid after the deferred period. In turn, it means your outstanding balance will increase, and you’ll pay more interest over the life of the loan.

As an example, if you have a loan for $300,000 with 20 years remaining at 3.5%, you would pay an additional $11,735 in interest and have your loan extended by 13 months. The actual cost to you will depend on your own individual circumstances.

2

What happens to any surplus funds available in my business loan/s?

Business customers with surplus funds in their loan can apply without affecting their surplus balance. If for any reason we can’t make this change, we will call you to discuss alternative options.

3

Will deferring my repayments impact my credit rating?

Taking advantage of this repayment deferral will not impact your credit rating or appear on your credit file.

4

Will my loan term extend if I defer my repayments?

For principal and interest loans, to maintain similar existing minimum monthly repayments after the deferral period, your loan term will be extended.

However, if your loan is interest only for the term of your loan, your loan term won’t be extended unless it expires within the deferral period. For further information, please contact us. Our small business customers can call 13 7000 and Relationship Managed business customers can get in touch with their Relationship Manager for more information.

5

How long will this six-month repayment deferral be available and is the deferral option only for business loans?

Supporting our customers during this period is our number one priority. Any changes to the availability of this support (including when it may end) will be published on this website.

We can also help by deferring repayments on vehicle and equipment finance loans for customers in need of support. Our small business customers can call 13 7000 and Relationship Managed business customers can get in touch with their Relationship Manager for more information.

After you request a deferral

FAQs

1

Do I need to provide evidence that I’ve been affected by COVID-19?

We’re not asking our customers to provide formal evidence that they’ve been affected by COVID-19. If you request a repayment deferral, we’ll ask you to confirm the uncertainty surrounding the coronavirus has impacted your business’ financial situation.

2

How long will it take to process my request?

Given the unprecedented volumes, it’s taking longer than usual to process loan deferral requests. We understand the urgency of your application and we’re working hard to respond as quickly as possible.

Once your deferral is processed, we’ll post a confirmation letter to you. For Relationship Managed customers, you’ll also receive confirmation of your deferral directly from your Relationship Manager.

3

My repayment deferral is approved but interest is appearing on my account. Why?

Each time your monthly interest is calculated, we’ll increase your loan limit to ensure no repayment is required each month. This may take 24 hours, so don’t worry when the debit interest appears in your transaction listing. You’re not required to repay this during your deferral period.

4

When does the repayment deferral start?

Your deferral letter will include the start date for your deferral.

You’ll need to pay any interest charged before your deferral was approved, so please check your statements or online banking and - of course - if you're experiencing difficulty, please contact us.

During the deferral period

FAQs

1

Will I need to make any repayments during the six-month deferral period?

No, you aren’t required to make any repayments during the six-month deferral period. However, you can choose to continue making repayments, which will reduce the balance you pay interest on.

2

Will I need to pay fees during the six-month deferral period?

Yes, all fees and charges applicable to your loan will still apply and be required to be paid during the deferral period.

3

What happens if interest rates change during my deferral period?

Interest on variable rate loans will continue to be charged at the applicable daily interest rate, which can change from time to time.

4

What happens to my principal and interest repayments at the end of my deferral period?

Your loan repayments will start again after the six-month deferral period. For principal and interest loans, your loan term will extend by the number of months required to keep your repayments similar to the amount you were paying before the deferral.

For business loans which are interest only for the term of the loan, your loan term will not be extended (unless it expires within the deferral period) but your interest payments will increase as a result of the capitalised interest. Here’s more information on how interest is capitalised.

If, prior to the end of your deferral period, you think you’ll have difficulty making your repayments when they recommence, you can talk through your options with us.

How can we help?

Business Specialists Team
Speak with someone from the team today

Business Banking Specialists

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