Financial Hardship Options for your Business
If cash flow is tight during Stage 4 restrictions, don’t feel like you need to get through it all by yourself. Many of the organisations that you make payments to business have specialised hardship teams who are ready to help. Here are 6 steps to take should you be starting to feel the pressure of getting all the bills paid on time:
Assess your financial situation – make sure you are fully aware of your obligations. Regularly review and update your business accounts, keep track of cash flow and stay in touch with your accountant.
Make a list - create a list of all the organisations that you normally pay money too. Work out who you owe money too, how much you owe and due dates for each.
Do the sums – Work through your financial situation to work out how much you can afford to pay and how often.
Make contact with the organisations you owe money to (utilities, suppliers, banks)– speak to them as soon as you identify that there may be an issue with paying and discuss your situation. Ask if you can defer the due date, make part payments or go onto a payment plan. Assistance, options and programs will vary on a case by case basis and may be different for each organisation
Stick to the plan – once you have made arrangements, stick to them. If they become unsustainable, make contact with the organisations again and review what has changed and why.
Get advice and help – organisations such as the National Debt Helpline and the ATO may be able to help assist you to manage your debt further. You may also need to seek further support – talk to your accountant, the appropriate ombudsman or the Victorian Small Business Commissioner.
Many organisations, suppliers and utilities have dedicated hardship teams and programs. Your bills and statements are likely to have the contact details as part of the document (they may be in the fine print or hidden on the last page).
In the first instance, you should contact your retailers and providers directly to discuss the payments. The following list provides other contacts and organisations that may be able to help.
Banking - Australian Banking Association
Rent & Leasing - Contact your landlord or agent directly. If you then need further advice and assistance, contact the Victorian Small Business Commissioner
Council Rates - Melton City Council Rates
Australian Tax Office - Support for Businesses with Financial Difficulties
Water - Western Water and City West Water
Electricity & Gas - Contact your retailer first, and then if you need further support, contact the Energy & Water Ombudsnam
Phone & NBN - Contact your retailer first, and then if you need further support, contact the Telecommunications Industry Ombudsman
Insurance - Contact your retailer first, and then if you need further support, contact the Australian Financial Complaints Authority
The National Debt Helpline is a not-for-profit service that helps people tackle their debt problems. Their professional financial counsellors offer a free, independent and confidential service.
The National Debit Helpline provides a range of resources and step by step guides to help you get back on track. You might feel overwhelmed, but you have options and there are steps you can take yourself. But if you feel you need a bit more guidance or need help quickly, simply call the National Debt Helpline on 1800 007 007.
If you are looking for additional, tailored help for your business you can also connect to a business mentor as part of Melton City Council’s Venture Melton Business Network support program. There is no cost to connect with a mentor and they may be able to provide you with some valuable advice to help you with your situation. Connect with a mentor here.
If you are feeling anxious or uncertain, there are organisations available to help:
Lifeline Australia
13 11 14 (24 hours/7 days)
Text 0477 13 11 14 (6pm – midnight AEDT, 7 nights)
Chat online (7pm - midnight, 7 nights)
Beyond Blue
1800 512 348
Coronavirus Mental Wellbeing Support Service
Beyond Blue Support Service offers short term counselling and referrals by phone and webchat on 1300 22 4636
Susan Beniston
Visitor Servicing & Development Officer