Business Loan Interest Rates | Business Finance

An online lending calculator is only for obtaining estimates and does not include lender charges or make allowances for user credit variations. Any offer received from a lender can be at a different rate from the advertised rate.

Both banks and finance companies can be highly competitive in commercial lending. The competitive edge may vary with the type of product – secured or unsecured. The industry sector, especially for equipment credit, may influence rates with some specialist non-bank lenders highly competitive in their specific lending area.

Rates advertised or displayed by banks and lenders will tend to be their lowest rate for strong applications with good credit for purchases of new goods. An individual application that does not meet the highest criteria levels may be offered a different rate.

Applicants with a good credit profile and strong financials are typically offered the best rates. Lender rates advertised are for new goods. Used goods may attract higher rates. To improve the application, operators may look at reducing debt levels and improving credit score.

Yes. Applications for commercial car credit can be submitted to a broker, lender or bank and approved before the vehicle purchase is finalised.

Being registered for GST is not essential for being eligible for commercial credit but lenders may look more favourably at operators that are registered for GST. Operators without GST registration but with good financials and a strong application may be offered competitive rates.

Yes. Commercial credit interest is treated as a tax deduction.

Operators would need to request a quote in order to obtain a specific rate for the credit purpose.

Yes. Buyers can use an online calculator as offered by lenders to calculate estimates of their car loans using advertised rates.

Asset acquisition funding and secured commercial credit are typically arranged with a fixed rate that does not change. Some unsecured products may have a variable rate which is subject to lender and market fluctuations.

Operators can select from a number of credit products to finance trucks. The rates differ across the selection.

No. Lenders assess each application on an individual basis and make rate offers based on that assessment. Factors such as credit rating, financial assets, current liabilities and debt levels, turnover and other aspects are considered. The variations in applications results in different rate offers.

Not necessarily. As secured format credit, car and equipment funding rates can be highly competitive. While motor vehicle rates tend to be consistent with the type of vehicle, equipment rates can vary with the type of equipment and/or the industry.

Asset acquisition funding products for cars, trucks and equipment tend to attract the cheapest rates as they are secured financing facilities. Within that category, the rates vary with CHP and Chattel Mortgage the lowest, Leasing a bit higher and Rent-to-Own the highest. Unsecured credit and overdrafts tend to attract higher rates than secured credit.

The financial position, turnover, trading history and other factors of the application for self-employed operators will be considered when lenders make a funding rate offer. Often the personal financials of the operator would also be considered. Self-employed operators can receive competitive rates but all offers are subject to lender decisions.