Listen up – The Small Business Cashflow loan’s two-year interest-free and repayment-holiday periods are about to end! This means some are now expected to make monthly repayments with interest.


How do you pay off the loan?


You’ll have 60 months or five years to pay off the loan, which will be subject to an annual interest rate of 3% from the first day of the loan’s third year. Here are some rules during the loan period:


         If the loan is paid in full within the first two years, there will be no interest charged

         Repayments are not required in the first two years, but voluntary payments are allowed at any time

         After two years, regular payments will be required for the principal and interest


From 21 March 2022, the first two years of the loan are interest-free even for existing borrowers, who have not been in default of their SBCS loan. For new borrowers, the change applies from 21 March 2022 but if the loan is drawn down to four separate amounts up to the maximum loan amount, the two-year interest-free period begins from the date of the first drawdown. Any further drawdowns don’t have a new interest-free period.


Don’t default – it may immediately become due and payable and you may be charged with default interest.


Existing borrowers who applied for a top up loan have two separate loans with two different interest-free periods. For an existing SBCS loan, the interest-free period starts from the date the loan was made available. For a top up loan, the interest-free period starts from the date the first drawdown of the top up loan was made available.


You can make payments through internet banking, debit or credit card, in myIR or from overseas. Don’t forget to include your IRD number for reference. You can also propose an instalment arrangement with IRD. Note that the tax type for SBCS repayments is SBC.


Update your accounting


Are you ready to make repayments? If you need assistance with all these, give us
a bell
and we’ll see how we can help. We’ll make sure you’re managing your cash flow carefully by issuing invoices on time, updating your accounting and reporting, building a cash reserve, and projecting your cash flow in advance.


Get ahead at peak times and keep a strong credit score. Let’s chat soon!


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 Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.

Aside from business consultation, we are business accountants Wellington who offer accountingbookkeepingpayroll services designed to help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.



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