Banks warn cyclone-hit businesses to call lenders to avoid penalties

The top banks have assured businesses hit by Cyclone Alfred that missed loan repayments won’t harm credit scores — provided they notify lenders. SEE OUR CYCLONE VIDEO / PHOTOS

Some of the fallout from Cyclone Alfred in Logan and Redland, clockwise from left: bare shelves at Woolworths in Cornubia; Logan’s flooded Skinners Park on the Logan River and the eroded foreshore at Redland Bay. Pictures: JUDITH KERR

The country’s top lenders and banks have moved to assure businesses and homeowners hit by Cyclone Alfred that missed loan payments will not be penalised — so long as they notify their lender.

Australian Retail Credit Association (Arca), which represents the country’s major lenders, confirmed businesses and individuals who have missed loan repayments due to the cyclone’s disruption can access financial hardship options without affecting their credit ratings.

Available relief measures include deferred payments, reduced repayment schedules, and other tailored support programs aimed at maintaining financial stability for businesses recovering from the disaster.

Following this month’s cyclone, widespread uncertainty over financial relief has left many affected businesses in Logan and Redland struggling to understand and access available support.

Arca chief executive Elsa Markula in front of a Redland Bay home destroyed after a massive gum crashed through its roof. Pictures: JUDITH KERR

Arca CEO Elsa Markula said reports indicated confusion over eligibility, application processes, and potential impacts on credit standing, despite industry assurances that assistance was readily accessible.

“With a disaster of this scale, business owners are dealing with supply chain disruptions, insurance claims, and lost revenue,” Ms Markula said.

“Loan repayments may not be their top priority, but we want to ensure they know help is available.

“Proactive communication with lenders can prevent long-term financial consequences.”

Arca represents the four major banks, ANZ, Commonwealth Bank, NAB, and Westpac, as well as credit reporting bodies, specialist consumer finance companies, and marketplace lenders and its members account for more than 95 per cent of all consumer lending in Australia.

A bay cruiser washed up on the foreshore at Redland Bay during Cyclone Alfred. Picture: JUDITH KERR

Feedback from affected regions including Logan and Redland found many businesses were unaware of the repayment options or unsure how to apply.

Some operators “mistakenly assumed” that relief measures would be automatically applied, while others were concerned that applying for hardship assistance could impact their long-term creditworthiness.

Industry groups and business advocates have urged financial institutions to improve outreach efforts to ensure businesses understand their options.

Some lenders have contacted affected clients, but Arca said many business owners remained uncertain about whether they qualified for support or how to initiate the process.

A large schooner washed up on the foreshore at Redland Bay during Cyclone Alfred. Picture: Judith Kerr

Paul Triston, a Logan business owner, expressed frustration over the lack of clear guidance.

“We’ve had to deal with property damage, staffing issues, and supply disruptions,” he said.

“The last thing we need is confusion over whether we can access financial relief. It shouldn’t be this hard to get straightforward information.”

To bridge the information gap, Arca has directed business owners to www.creditsmart.org.au, which provides detailed guidance on financial hardship assistance.

Ms Markula also said delayed applications would not disadvantage businesses, as lenders remained committed to supporting those affected.

Originally published as Banks warn cyclone-hit businesses to call lenders to avoid penalties