BOQ Commercial Rate Loan
- Upfront Fee
- 0.75% of the approved limit applies (minimum $750).
- Max. Loan Amount
- $2,000,000
- Loan Term
- 1 month to 5 years
Summary
Choose between four flexible commercial rate loan options to grow and develop your business.
Bank of Queensland's (BOQ) Commercial Rate Loan is designed for property development, property investment and business acquisitions, with loans starting from $500,000. You can choose from four interest rate options: variable, interest-capitalised variable, fixed or interest prepaid. Each has its own interest periods: 1–3 months for the variable options, 1–5 years for fixed and 1 year paid in advance for interest prepaid. BOQ doesn't publish interest rates for this loan. Rates are set daily for each option and interest period, and you can get them from any BOQ branch.
Details
Product details
| Product Name | BOQ Commercial Rate Loan |
| Min. Loan Amount | $500,000 |
| Max. Loan Amount | $2,000,000 |
| Loan Security | Secured |
| Upfront Fee | 0.75% of the approved limit applies (minimum $750). |
| Loan Term | 1 month 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. BOQ doesn't publish Commercial Rate Loan rates, so you'll need to ask a BOQ business banker for a quote.
- Additional repayments and redraw. Scheduled principal reductions, progress draws and redraws are only available on the variable and interest-capitalised variable options. Extra repayments may be possible, but check the terms with BOQ, especially for fixed-rate loans, where break costs may apply.
- 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?
- Application fee. A fee of 0.75% of the approved limit (minimum $750) applies.
- Monthly fee. An ongoing monthly service fee of $50 applies.
- Security fee. If you're required to provide an additional asset as security, a $150 additional security fee applies. If you ask BOQ to release a security, a $350 security release fee applies.
- Break fee. This fee is charged if you break a fixed-rate period either by settling the loan amount or switching loan types.
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.
Frequently asked questions
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