23 Mar Nedbank commits to assist clients with cashflow challenges as a result of COVID-19
Nedbank has announced a number of measures to help individuals and businesses hit by the coronavirus.
This support could include deferring payments (or part thereof) for a suitable period, extending existing loan periods or extending additional credit to manage short term cashflow shortfalls, the bank said in a statement.
“We are committed to supporting our clients during this time of uncertainty and have a number of solutions available to assist clients in good standing who are impacted by this pandemic.
“We undertake to work with our clients to help them through this period of enormous challenge for all South Africans.
“This undertaking to work alongside and support our clients with suitable individual solutions to cashflow challenges they may experience as a result of Covid-19 extends to any loan agreement they have with us.”
Nedbank said its clients are encouraged to contact the bank. Smalll business clients can speak to their dedicated relationship banker if they need to restructure their debt or change their payment arrangements as a consequence of Covid-19.
“We continue to work with our clients, regulators, industry bodies and government to mitigate the impact of Covid-19 and will provide further guidance to clients on these matters as they evolve,” it said.
Similarly, Standard Bank also announced relief measures for businesses hit by coronavirus, including a Coronavirus Business Interruption Payment Scheme which will provide payment relief to your business for 90 days.
The Department of Small Business Development is also establishing a debt relief fund to help mitigate the impact of the economic shutdown caused by the coronavirus on small, micro and medium enterprises (SMMEs).
Small business minister Khumbudzo Ntshavheni said that the fund is aimed at providing relief on existing debts and repayments.
“For SMMEs to be eligible for assistance under the debt relief fund, the applicant must demonstrate the direct link of the impact or the potential impact of Covid-19 on business operations,” Ntshavheni said.
“This facility will also assist entities to acquire raw material, pay labour and operational costs. All these interventions will be structured to match the patterns of the SMMEs cash flows, as well as the extent of the impact suffered.”
- To strengthen monitoring and avoid abuse, businesses requiring assistance will be required to enrol on the SMME South Africa platform here.
- This platform will go live on Tuesday, 24 March 2020.
In future, the database will also be used to apply for both financial and non-financial support, access information about business opportunities, and access market opportunities, Ntshavheni said.
“As the nation grapples with the impact of the Covid-19 pandemic, the department will be guided by the National Command Council in determining the sectors that are deemed severely impacted in order to qualify for the debt relief fund.”