Risk Info NZ Podcast for 15 April.

Government-backed Loans

Financial advisers looking for support from the banks to keep their businesses afloat during the lockdown are discovering the government-backed scheme is not quite as easy as it first seemed.

While the government has agreed to guarantee 80% of any COVID-19-related bank loan to business owners, the remaining 20% of the loan has to be guaranteed by the borrower – and that could involve putting their home or some other asset on the line.

Katrina Shanks, CEO of Financial Advice NZ, is sure many financial advisers will apply for a government-backed loan, but agrees there has been some confusion over the ease in obtaining one.

She says that while some business owners thought they had access to these funds more easily than a normal process, the fact is that banks have to apply their normal checks and balances.

More news in a moment...

This Week's Poll

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$50M Customer Credit

Southern Cross Health Society is to return $50m to its members and business customers as a result of the coronavirus pandemic.

The CEO of Southern Cross Health Society, Nick Astwick, says the society is essentially owned by its members and so wants to support them.

The plan will see a credit awarded to each member based on a percentage of their policy’s premium.

Asteron Offers Help

Suncorp New Zealand is supporting Asteron Life insurance customers experiencing financial hardship as a result of COVID-19.

Suncorp New Zealand CEO Paul Smeaton says the economic effects of the pandemic are likely to be felt by customers and New Zealand businesses for some time to come.

He says the first step toward support lies in customers speaking to their broker or financial adviser.

Australia

Consumers in Australia are looking to their financial service providers for reassurance during the COVID-19 outbreak, according to research from MetLife.

The insurer says its COVID-19 Insights research shows that superannuation fund members and investment holders want reassurance that their funds are able to navigate this period of volatility.

According to its research, 58 percent of people surveyed say COVID-19 has already directly impacted their financial situation.

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