Up to $5,000,000
Business Management & Admin

CBA: Deferral for BetterBusiness Loan and Equipment Loan Repayments (up to $5m)

Summary

CBA will automatically defer BetterBusiness Loan and Equipment Loan principal and interest repayments for eligible business and community customers with total lending limits up to $5 million, in April, May and June 2020. We’ll contact customers around the end of their deferral to confirm whether they need a further three-month deferral in line with the ABA loan deferral arrangements. What is available? Automatically deferring all principal and interest repayments on BetterBusiness Loan and Equipment loan repayments for a period of up to 6 months. This 6 month period includes: An automatic deferral for 3 months for all eligible CommBank customers. Before the end of the first three months, we’ll contact customers so they can opt-in for a further three months. Do I have to ‘opt-in’? For the April to June 2020 deferral: No - we’ve automatically opted-in all eligible business and community customers to have their loan repayments automatically deferred for April to June 2020. We will communicate directly to eligible customers by the end of March – there is no need to get in touch with us directly to arrange a 3 month deferral. For the July to September 2020 deferral: We’ll contact customers around the end of their initial deferral to let them know how they can extend their loan repayment deferral for another three months if they need to. What are the implications? During the deferral period, deferred interest and any fees will be added to the outstanding balance in accordance with the contract and capitalised over the remaining term of the facility. The total amount of interest payable will be more than it would have been under the original contract term if payments are deferred. For amortising (principal and interest) loans, we will extend the loan term at the end of the deferral period so that repayments are in line with what is currently being paid, regardless of any interest rate changes during the deferral period. After the end of the deferral period, interest rates and repayments may change in accordance with the contract. For interest only loans, we will add the deferred interest and any fees to the principal of the loan balance at the end of the deferral period. This amount won’t need to be repaid until the maturity of the loan. Interest repayments will recommence after the end of the deferral period in line with the contract. After the deferral period, we will reinstate the regular direct debits. We will communicate these exact arrangements with customers, including how they can continue to make loan repayments should they wish to. How do I ‘opt-out’? All eligible CommBank business customers have been opted-in to the April to June 2020 deferral. The repayment amount will be set to $0 for payments due, with any direct debits paused. If you make repayments yourself, you are no longer required to do so. We’ll communicate with our customers about how they can make repayments if they do not wish to be covered by the auto-enrolment.
CBA will automatically defer BetterBusiness Loan and Equipment Loan principal and interest repayments for eligible business and community customers with total lending limits up to $5 million, in April, May and June 2020.

We’ll contact customers around the end of their deferral to confirm whether they need a further three-month deferral in line with the ABA loan deferral arrangements.

What is available?
Automatically deferring all principal and interest repayments on BetterBusiness Loan and Equipment loan repayments for a period of up to 6 months. This 6 month period includes:
  • An automatic deferral for 3 months for all eligible CommBank customers. Before the end of the first three months, we’ll contact customers so they can opt-in for a further three months.
Do I have to ‘opt-in’?
  • For the April to June 2020 deferral: No - we’ve automatically opted-in all eligible business and community customers to have their loan repayments automatically deferred for April to June 2020. We will communicate directly to eligible customers by the end of March – there is no need to get in touch with us directly to arrange a 3 month deferral.
  • For the July to September 2020 deferral: We’ll contact customers around the end of their initial deferral to let them know how they can extend their loan repayment deferral for another three months if they need to.
What are the implications?
During the deferral period, deferred interest and any fees will be added to the outstanding balance in accordance with the contract and capitalised over the remaining term of the facility.

The total amount of interest payable will be more than it would have been under the original contract term if payments are deferred.
  • For amortising (principal and interest) loans, we will extend the loan term at the end of the deferral period so that repayments are in line with what is currently being paid, regardless of any interest rate changes during the deferral period. After the end of the deferral period, interest rates and repayments may change in accordance with the contract.
  • For interest only loans, we will add the deferred interest and any fees to the principal of the loan balance at the end of the deferral period. This amount won’t need to be repaid until the maturity of the loan. Interest repayments will recommence after the end of the deferral period in line with the contract.
After the deferral period, we will reinstate the regular direct debits. We will communicate these exact arrangements with customers, including how they can continue to make loan repayments should they wish to.

How do I ‘opt-out’?
All eligible CommBank business customers have been opted-in to the April to June 2020 deferral. The repayment amount will be set to $0 for payments due, with any direct debits paused.

If you make repayments yourself, you are no longer required to do so.

We’ll communicate with our customers about how they can make repayments if they do not wish to be covered by the auto-enrolment.
How do I get in contact?
Eligible customers will be contacted directly before the end of March. We’re doing our very best to support you and acknowledge it’s a rapidly changing environment. We’re working around the clock to ensure we have dedicated teams of specialist bankers to help you through this and to respond to your queries.

Our online accounts are available so you can work remotely and access 24 hours a day through NetBank, CommBank app or through CommBiz.

We encourage any customer that needs help to contact us. If you have a Relationship Manager they will be able to assist you at this time, or speak with our dedicated Business Financial Assistance team on 13 26 07, who are available 24/7.
CBA: Deferral for BetterBusiness Loan and Equipment Loan Repayments (up to $5m) CBA: Deferral for BetterBusiness Loan and Equipment Loan Repayments (up to $5m) <strong>How do I get in contact? </strong><br />Eligible customers will be contacted directly before the end of March. We’re doing our very best to support you and acknowledge it’s a rapidly changing environment. We’re working around the clock to ensure we have dedicated teams of specialist bankers to help you through this and to respond to your queries.<br /><br />Our online accounts are available so you can work remotely and access 24 hours a day through NetBank, CommBank app or through CommBiz.<br /><br />We encourage any customer that needs help to contact us. If you have a Relationship Manager they will be able to assist you at this time, or speak with our dedicated Business Financial Assistance team on 13 26 07, who are available 24/7. P455 https://www.savvysme.com.au/marketplace/images/detailed/1/blob_mht2-do.png 0.000000 2020-06-01