Attention small business owners! If you took out a Small Business Cashflow (SBC) loan, it’s time to start thinking about your repayment plan. For most borrowers, the 5-year loan term ends in 2025, so watch out for default interest charges. Here’s a quick guide to help you stay on top of your loan and avoid any unnecessary headaches.
Check Your Loan Status
First things first, log in to myIR to check how much you owe and when your final repayment date is. It’s important to know where you stand so you can plan accordingly.
Make Extra Payments
If you can, make extra payments through myIR. This will help you avoid the default interest charges of 13.88%. Just make sure you select your SBC loan as the debt you want to pay.
Set Up a Repayment Plan
Can’t repay the outstanding balance in full? No worries! You can set up a repayment plan by getting in touch with myIR. Having a repayment plan in place means your interest rate will be a much more manageable 3%.
Already Have a Repayment Plan?
If you already have a repayment plan but haven’t kept up with it, now’s the time to get back on track. Setting up regular monthly payments can help lower your balance as quickly as possible and keep you from falling behind.
Multiple Repayment Plans?
If you have more than one repayment plan, make sure to use your unique SBC loan identifier, called the ‘Media Number,’ when making repayments. You can find this number at the top of any letters you’ve received from the IRD.
What Happens If You Do Nothing?
If your SBC loan is unpaid 20 working days after the final repayment date, the loan will default. This means the IRD may demand full payment, add default interest of 13.88% to the outstanding balance, and even take legal action. Yikes!
For more detailed information, visit the IRD website. And if you have any questions or need further assistance, don’t hesitate to get in touch with the team at Sidekick!
