For many SME owners with a mortgage there is the added stress of juggling how to keep their home and business afloat during COVID-19. There are various support packages, services and tools that SME owners can use in their professional and personal lives to prop up their financial commitments.
SMEs usually draw capital from a range of sources, including director’s loans and commercial loans from a bank or financial institution. According to the Australian Banking Association, financial relief has been offered to 98 per cent of businesses with loans with an Australian bank, so contacting your lender regarding deferring SME business loan repayments for a short period could alleviate some financial pressure.
Reducing overhead costs and managing all incoming and outgoing payments is another way to protect your business during this pandemic. For any SMEs running into issues with external stakeholders, independent support organisations such as Australian Small Business and Family Enterprise Ombudsman (ASBFEO) can assist.
Maintaining positive relationships with suppliers, partners and customers is essential as everyone is feeling the impacts of COVID-19. Our business has been using a combination of technology and human support to provide critical information, support and advice to customers and stakeholders.
Building a business from home or engaging teams through remote working is common for many entrepreneurs, start-ups and SME owners, so the ability to meet their mortgage repayments can have both professional and personal impact. It is important to avoid the “set and forget” approach, because there are several strategies you can explore to help save money on your home loan which can then be funnelled elsewhere.
With the roof over your head taken care of, you can then explore financial savings in other areas of your home or office space such as energy and internet providers.
I’d encourage all SME owners to cast a critical eye over their finances and to take action to navigate the financial and mental pressures of leading a business through economic upheaval.
Anthony Justice, CEO uno Home Loans