BOQ Business Term Loan

Borrow from $10,000 up to $100,000,000 with terms up to 30 years. This loan is secured and includes establishment and monthly fees.

BOQ’s business term loan has borrowing limits from $10,000 up to $100,000,000. The minimum term is 1 year, and maximum terms depend on the type of security offered. For loans secured 100% by residential property, the maximum term is 30 years. For non-residential property or mixed security, the terms are up to 25 years. This loan has principal and interest payments or interest-only repayments. Interest only payments are available only for a maximum of 10 years. You can choose between fixed or variable rates. The standard fixed rate starts from 4.09% for residential security or 4.39% for other security. The variable rate starts from 4.35% p.a. for residential security and 4.75% p.a. for other security. The rate offered may vary depending on the size of your loan, security offered and a full credit assessment of your application for finance. Fees include an application fee of 0.75% the approved limit (the minimum fee is $750), with a monthly service fee of $25.

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0.75% application fee

Upfront Fee

$100,000,000

Max. Loan Amount

1 to 30 years

Loan Term

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Details

Product NameBOQ Business Term Loan
Min. Loan Amount$10,000
Max. Loan Amount$100,000,000
Loan SecuritySecured
Upfront Fee0.75% application fee
Loan Term1 to 30 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, with a maximum term of 30 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 $25 applies.
  • Early repayment fee. 0.5% of the approved loan amount if you pay off your loan up to one year after the establishment date, or 0.5% of the loan amount up to a maximum of $1,200 if repaid before three years.
  • Security fee. If you are required to declare an additional asset as security, you will be charged a fee of $150.
  • Substitution of security fee. If you choose to substitute your current security for another asset, you'll be charged a fee of $300.
  • Security release fee. If you request for your security to be released, you will be subject to a fee of $320.
  • 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.

*Additional fees and charges may also apply. Please contact the lender for a full breakdown of fees.

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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