For most borrowers, the five-year loan term of their Small Business Cashflow Loan (SBC) contract ends in 2025. Avoid unnecessary default interest and think about repaying your loan now.
What you need to do
There are a few things you can do to check you’re on top of your loan.
- Log in to myIR to check how much you owe and when your final repayment date is.
- Make extra payments in myIR to avoid default interest charges of 13.88%. Make sure you select your SBC loan as the debt you want to pay.
- Set up a repayment plan if you cannot repay the outstanding balance in full. To set-up a plan, you need to send us a message in myIR or call us.
Having a repayment plan in place means your interest rate will be 3%.
Already have a repayment plan?
If you haven’t kept up to date with your repayment plan, now’s the time to get back on track.
You can avoid unnecessary default interest by setting up regular monthly payments to lower your balance as quickly as possible.
If you have more than 1 repayment plan, use your unique repayment plan identifier when making repayments. Your repayment plan identifier is called the ‘Media Number’ and you can find it at the top of letters you get from us.
What happens if you do nothing?
If your SBC loan is unpaid 20 working days after the final repayment date, the loan will default and we may:
- demand full payment
- add default interest of 13.88% to the outstanding loan balance
- take legal action.
More info: If you default on the Small Business Cashflow Scheme loan
More info: Interest and Repayment
Source: IRD: https://www.ird.govt.nz/sbc-loan
Disclaimer
Unfortunately, with details changing all the time and at such speed, we need to add that the above content is correct at the time of writing as far as the author is aware and is very much subject to change. We have, to the best of our ability, acknowledged any shared content. All related links provided to the corresponding websites are subject to change as they are live links.