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Frequently asked questions
How much financing can I borrow from my lender?
If you want to know how much money you can take out in a business loan, we must inform you that such amount would depend on several factors. These things include your credit history and the performance of your business. Moreover, you will have to decide the amount you want to borrow. Remember that, just because your lender finds you qualified for a loan amounting to $100,000 does not automatically translate that such financing is necessarily appropriate for your enterprise’s needs at that time. Also, before you apply for a loan, we want to remind you that it is worthy of discussing loan criteria with your bank. It is because these financial establishments feature slightly diverse lending benchmarks.
Why is getting a favourable rate significant when taking out a loan for a small business?
It is incredibly important to have the correct rate when availing a small business loan. Well-managed cash flow is significant to the triumph of small business banking. You surely do not want surprises, such as a sudden interest rate spike destroying your enterprise’s capability to repay your borrowed funding, do you? Through getting a decent rate possible, you get to minimise the interest you settle on your loan. Therefore, you get more funds saved, which you can utilise for your other business needs, such as upgrading your office or training or upskilling your employees.
Which is better between a variable or fixed interest rate?
Availing a business loan offers you the choice for either a variable or fixed interest rate. But we should remind you that both of these rates have their upsides and downsides. If you want tremendous flexibility, like the ability to make extra repayments and fee-free redraw features, we recommend the loan with the variable interest rate for you. Nevertheless, if interest rates surge, your repayments will also experience the same thing. Thus, it is significant for you to budget for this kind of probability.
Features of loans with variable interest rates are also present in loans with a fixed interest rate. They include advanced repayments and redraw. However, lenders usually charge a higher rate with loans with fixed interest rates, compared to the market-leading variable business loans. If you want the certainty to plan financially for repayments without the worry of interest rates getting modified, then, we recommend the loan with a fixed interest rate as the right one for you.