It has approved over $100m in additional funding
ASB is offering $123 million in business overdrafts to struggling Kiwi businesses, and has reduced its borrowing rate to 2.95% - significantly lower than the average rate for business overdrafts provided by main banks, which are typically near 10%.
ASB says that “reality has started to hit” for many of its small business customers, who have been discussing various scenarios and forecasts to help with cashflow. It says it has decided to approve the $123 million as a result of those conversations, in addition to the over $4 billion it has already put out in various relief packages once the COVID-19 situation started to impact customers.
ASB executive general manager business banking Tim Deane has encouraged customers to use ASB’s online tools to see what kind of assistance might be right for them.
“We are here to help Kiwis, and we’re doing that in a range of ways by working with our business customers on a case-to-case basis to ensure we’re providing the best support that suits their individual situation,” Deane said.
“ASB has approved $123 million of business temporary or permanent overdraft facilities at the significantly lower rate of just 2.95%.”
ASB is part of the government’s Business Finance Guarantee Scheme along with the other three main banks, and has offered its business customers a range of options including early access to term investment funds, interest only payments and loan deferrals.
“A total of $1.5 billion of loans have had a six-month deferral put in place, while another $2.7 billion of loans have been moved to principal relief arrangements,” Deane said.
“ASB has also waived fees on more term deposit breaks, unarranged limits and working capital and overdraft facilities, to a total of $184 million to date.”
“As the country prepares to move to Alert Level 3, it’s timely to remind small business owners that there are also free ASB tools they’re welcome to access which can also help improve business efficiency,” Deane concluded.
