A reminder for your sales team and your customers: IAWO and guaranteed loans

The Instant Asset Write-off scheme has been a great success in stimulating sales, with HVIA’s efforts to extend it rewarded following extensive advocacy work prior to the end of the Financial Year.

Does your team know that it was extended until 31 December 2020? And are they making sure your customers know?

HVIA and partners are running a campaign to provide the heavy vehicle industry simplified information about the Government’s stimulus measures – the Instant Asset Write Off (IAWO) and the Backing Business Investment (BBI).

The campaign webpage includes the details of the incentives in an easy to follow format and links to answer most questions.

Make sure your sales team are across the details and letting your customers know.

Lesser known it seems, the Government has also created a scheme with guaranteed loans for small to medium businesses.

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Tell them there’s credit available

Under the Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme the Government is guaranteeing 50 per cent of new loans issued by eligible lenders to SMEs.

The Scheme has enhanced lenders’ willingness and ability to provide credit, supporting many otherwise viable SMEs to access vital additional funding to get through the impact of Coronavirus.

The initial phase of the Scheme remains available for new loans made by participating lenders until 30 September 2020. The second phase of the Scheme will start on 1 October 2020 and will be available for loans made until 30 June 2021.

Eligible lenders are currently offering guaranteed loans up to 30 September 2020 on the following terms:

• Available to SMEs, including sole traders and not-for-profits, with a turnover of up to $50 million.
• Maximum total size of loans of $250,000 per borrower.
• Loans will be for up to three years, with an initial six month repayment holiday.
• Unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

From 1 October 2020, eligible lenders will be able to offer loans during the next phase on the same terms as the current Scheme with the following enhancements:

• Loans can be used for a broader range of business purposes, including to support investment in a period of economic recovery.
• The maximum loan size will be increased to $1 million per borrower.
• Loans can be up to 5 years rather than 3 years and whether there will be a six month repayment holiday will be at the discretion of the lender.
• A loan can be either unsecured or secured (excluding commercial or residential property).