- Upfront Fee
- 0.75% of the approved limit applies (minimum $750).
- Loan Term
- 1 to 5 years
Bank of Queensland's (BOQ) Commercial Rate Loan provides business funding at competitive interest rates. Business owners can choose between four different interest rate options, each with its own loan terms and repayment schedule.
With loan amounts available from $500,000, this loan type is best for property purchases and investment opportunities. The maximum repayment period is 5 years.
|Product Name||BOQ Commercial Loan|
|Min. Loan Amount||$500,000|
|Max. Loan Amount||No maximum amount|
|Upfront Fee||0.75% of the approved limit applies (minimum $750).|
|Loan Term||1 to 5 years|
How does the BOQ Commercial Rate Loan work?
Depending on what your business needs and its cash flow requirements, you can choose between a variable interest rate loan, an interest-capitalised variable loan, a fixed interest rate loan or an interest-prepaid option. Certain features such as the redraw and progress draw facilities are only available with variable interest rate options.
Besides residential or commercial property, you can secure the loan with assets such as fixed or floating company charge or a director's guarantee.
Features of the BOQ Commercial Rate Loan
If you're interested in applying for the Commercial Rate Loan, here are some of the features from which you can benefit.
- Fixed and variable interest rates. This loan is available with either fixed or variable interest rates. The interest-prepaid option is available for a period of one year and requires an upfront annual interest payment.
- Loan purpose. This loan is typically used to finance more substantial business purchases such as acquiring additional premises or financing investments.
- Loan terms. The maximum loan period is 5 years. Variable interest loans are offered for short terms of a few months, but fixed rate options are longer.
- Monthly fees. This loan has an ongoing monthly fee of $50.
- Minimum amount. You can borrow from a minimum of $500,000.
- Rates. You can get the latest commercial loan rates by contacting Bank of Queensland directly.
- Additional repayments and redraw. Extra repayments are allowed, but fees are payable if you exceed the agreed-upon repayment amount by $5,000 within a 12-month period. Scheduled principal reductions, progress draws and redraws are only available on the variable interest loan options.
- Security. You can use commercial and residential property to secure this loan. A director's guarantee or other business asset can also be used as security.
How much does the loan cost?
- 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 service fee of $50 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 charged if you break a fixed-rate period either by settling the loan amount or switching loan types.
- Settlement fee. You are charged a fee of $150 when the loan is completely repaid.
How to apply for the BOQ Commercial Rate Loan
Besides evidence to prove your business can repay the loan, you will be asked to provide the following information:
- The names of all account signatories
- Names, addresses and personal information about all company directors
- Identification (driver's licence and/or passport)
This loan is available for bigger purchases or investments to expand business interests. If you're considering using your business assets and property to secure the loan, take time to consider all your loan options before making a decision.
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