The Business First Lending Package lets you take advantage of discounted rates and fees on your business loan as well as on other convenient products.
The Business First Lending Package offers business owners discounted interest rates when they combine a line of credit or term business loan with a transactional account. You get a discount of 0.15% when you opt for the package, along with an additional 0.85% for term loan customers during the first year of the loan period.
If you choose to add Business Overdraft, Merchant Solutions or Equipment Finance as optional extras, you benefit from further reduced fees, as well as the additional 0.85% interest rate discount for term loan borrowers.
How does the BOQ Business First lending Package work?
This package is available for business loan customers who choose either the line or credit or term business loan option. The line of credit is a drawdown facility available for a minimum of $10,000 with a $25 monthly fee if chosen as a single product. A term loan can be secured for a maximum of 25 years when secured with residential property.
The package option allows you to attach these loans to one of BOQ's everyday transaction accounts for a discounted interest rate and reduced or waived fees. When you add two optional products like a Business Visa Debit or Debtor Finance to the package, you are eligible for further interest rate and fee discounts.
Features of the Business First Lending Package
Some of the features of the Business First Lending Package include:
- Exclusive to business owners. Holders of Business Line or Credit or Business Term Loans are eligible for this package.
- Discounted interest rate. Signing up for the package qualifies you for a 0.15% interest rate discount and waived monthly fees.
- Further discounts available. Adding two optional products gives you another 0.85% interest rate discount on your term loan in the first year. Optional products include the Business Overdraft, Merchant Solutions, Payment File Upload Facility, Equipment Finance, Debtor Finance, Trade Finance or a Business Visa debit card.
- Additional benefits. Business First Lending Package customers qualify for certain additional benefits, including discounted fees for online foreign exchange transactions and free business insurance continuity evaluations (if you own commercial property valued at $500,000 or more. Conditions apply.).
- Redraw. A redraw facility is available on the variable rate business term loan.
- Additional repayments. If you'd like to make extra payments or settle your loan before the end of the loan period, you will be charged a break-cost fee in addition to an early repayment fee or settlement fee.
How much does the loan cost?
These are some of the fees and charges you should be aware of when considering the Business First Lending Package.
- Application fee. This is payable when you apply for the loan and is equivalent to 0.75% of the loan amount.
- Additional facility fee. If you add a new eligible facility to your existing loan package, you will be charged a fee equal to 0.25% of the loan amount.
- Annual package fee. A fee of $495 will be charged on the anniversary of the establishment of the loan package for as long as you hold the package. If you convert your existing (eligible) loan type to the Business First Lending Package, you will be charged a conversion fee of the same amount.
- Early repayment fees. If you pay off your business loan before the end of the loan term, you will be charged a fee equal to 0.5% of the loan amount. In addition, a break-cost administration fee of $50 applies.
How to apply for the Business First Lending Package
Online applications are not available for BOQ business loans or packages. If you'd like to bundle your eligible business loan into the Business First Lending Package, you have to do it in person at a BOQ branch or phone the customer service line to get the ball rolling.
If you're a new customer, you will need to specify the following information about the loan:
- Whether or not the loan will be held by a trust
- Details of all signatories
- Financial proof that your business is able to repay the loan
New customers will also be asked to provide:
- A current Australian driver's licence
- A valid Australian passport
- A tax file number (optional)
It's important to consider your business's financial health before making a commitment, especially if you're declaring residential or other valuable assets as security.