bcu Business Line of Credit
- Max. Loan Amount
- $6,000,000
Summary
Borrow from $20,000 up to $6,000,000 and pay interest only on what you use. Interest charges depend on the type of security offered.
- Must read
The bcu business line of credit is no longer offered by bcu. Click here to compare alternative business line of credit products.
bcu was established in the 1970s, when the Bananacoast Community Credit Union was launched as an alternative to traditional banks. Their business line of credit offers funding from $20,000 up to $6,000,000. There are no minimum or maximum loan terms with this loan. You can use residential, commercial or rural property to secure this loan. Your interest rates will be variable, meaning that your monthly interest charges could fluctuate based on the market rate. How much you’re charged for interest also depends on the type of security offered. For residential property, the rate is 5.93% p.a., for commercial or rural property it is 6.68% p.a. Apart from interest charges, you will also be charged a loan establishment fee and a monthly account-keeping fee.
Details
Product details
| Product Name | bcu Business Line of Credit |
| Min. Loan Amount | $20,000 |
| Max. Loan Amount | $6,000,000 |
| Loan Security | Secured |
How does the bcu Business Line of Credit work?
This line of credit has a simple application process, although you must be a member of bcu in order to apply for a loan. You also need to submit business and personal data so that bcu knows you're capable of meeting your responsibilities with this loan. As there are no minimum and maximum terms, this means there are no set monthly repayments and that will take the burden off your business.
Features of the bcu Business Line of Credit
There are many features that come this loan, which include:
- No minimum or maximum loan term. As a line of credit is an ongoing facility, there are no minimum or maximum loan terms with this option.
- Variety of assets can be secured. With this line of credit, you can put forward real estate, such as residential, commercial or rural property, as security.
- Differing interest rates. As there are different types of assets that can be put forward against this line of credit, there are different types of interest rates as well. If a residentially property is used for security, the rate is 5.93% p.a. For a commercial or rural property, the rate is 6.68% p.a. The leasehold commercial security variable interest rate is 6.93% p.a, and it's important to note that the interest rate on this line of credit is variable.
- Varying fund deposit timelines. With this line of credit, the amount of time it takes for your funds to be deposited into your bcu account depends on your line of credit proposal and what type of assets are being put forward.
- Minimum repayments. You only make payments on what you use and pay the interest charged on that amount. It's important to take into account that the variable rate is dependent on the asset you've used as security for the loan.
- Large funds to apply for. This line of credit has a maximum amount of $6,000,000 that you can apply for, which should be more than enough to keep the cash flow of your business running like a river.
How much does the loan cost?
Here are some of the fees you can expect with this loan:
- A loan establishment fee
- A fee for switching from a variable to a fixed rate, amounting to $750
- A monthly account-keeping fee
With this line of credit, there is no annual loan fee, redraw fee or early loan repayment fee.
How to apply for the bcu Business Line of Credit
In order to be eligible for this line of credit, you need:
- A business account set up with bcu,or at least be a member of their bank
- An Australian business number (ABN), company number (ACN) or a registered business number in Australia
Some documents you need to apply for this loan are:
- A business plan outlining future growth for the business.
- Your personal financials to show that you are capable of meeting your obligations when it comes to this loan.
With very generous minimum and maximum loan amounts, this is a line of credit to consider while doing the research for what is right for your business and future growth.
Comparison of other business loans
Whilst we don't directly compare the bcu Business Line of Credit, compare other business loans offering similar features.
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