The ANZ’s head of retail and business banking, Mark Hand, suggests that 2021 will be a very difficult year for small businesses. Plank claims many small and medium enterprises will not recover from the COVID-19 crisis, even with loan deferrals from banks and wage subsidies from the federal government. He says the best move for some SME owners would be to wind up their business and walk away with some equity:
Many small to medium enterprises have been given a six-month reprieve by banks propping up their businesses by loan deferrals, and the government via wage subsidies. But senior bankers recognise that ultimately, many will never recover.
“There are businesses that are broke now and have no chance of survival but have been given a six-month stay of execution,” Mr Hand said.
