BOQ Business Term Loan

Information verified correct on October 26th, 2016

Expand your business or keep it running with the BOQ Business Term Loan, which offers flexible repayment options and a maximum loan term of 25 year(s).

BOQ’s Business Term Loan is a flexible loan product that allows business owners to secure funds with residential or commercial property assets. It’s the only product in BOQ’s Business Loan portfolio that allows weekly, fortnightly or monthly payments and that offers fixed and variable interest rates. While you make principal and interest repayments, you also have the option to make interest-only repayments for a maximum of five years.

How does the BOQ Business Term Loan work?

This loan can be used for any business-related purpose, from purchasing equipment to investing in property. The minimum borrowing amount is $10,000 and while you don’t have ATM access to funds, you can manage the loan through Internet banking.

Once your application is approved, you will be charged an establishment fee for setting up the loan. Following that, a monthly administration fee applies. Additional repayments are allowed and a redraw facility is available for variable interest rate loans.

Features of the BOQ Business Term Loan

Here are some of the features you can expect from the Business Term Loan.

  • Security. Residential and non-residential property can be used as security for this loan. BOQ will lend 80% of residential property value and 70% of commercial property value.
  • Loan amount. You can borrow from a minimum of $10,000.
  • Fixed rate. You can make fixed-rate repayments for up to a maximum of five years.
  • Loan terms. The minimum loan period is 1 year(s). Loans secured with residential property can be repaid over a maximum of 25 year(s), but if commercial property is used as security, the maximum loan term is 15 years.
  • Fees. Besides the establishment and monthly fees, you are liable for certain charges if you make changes to the loan agreement, repay early or declare more than one asset as security. Take a look at the fees outlined in more detail below.
  • Repayments. You can make weekly, fortnightly or monthly repayments. A fee applies for making additional payments that exceed the number of agreed-upon installments by $5,000.
  • Redraw facility. This feature is available for variable interest loans only.

How much does the loan cost?

The following fees are associated with the Business Term Loan:

  • Establishment fee. A fee equal to 0.75% of the loan amount will be charged for setting up the loan.
  • Monthly fee. An ongoing monthly fee of $20 applies.
  • Security fee. If you are required to declare an additional asset as security, you will be charged a fee of $150. The same fee applies if you request that an asset be released (security release fee).
  • Break fee. This fee is payable when you break a fixed-rate period either by settling the whole loan amount or switching loan types.
  • Settlement fee. A fee of $150 is charged when you finish paying off the loan.

How to apply for the BOQ Business Term Loan

You can apply for the Business Term Loan by clicking “Go to Site” on this page. BOQ will request personal and company information as part of the application, as well as information about your assets, liabilities and existing loans.

You will be asked to supply the following information about the loan:

  • Whether or not the loan will be held by a trust
  • Details of all signatories and partners
  • Personal and company financial information

Other required documents include:

  • A current Australian driver’s licence
  • A valid Australian passport
  • A tax file number (optional)

Applying for a business loan is a good way to progress your business without digging into working capital. However, it’s important that the loan product you choose is suited to what your business can afford, especially if you’re using commercial or residential property as collateral.

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