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CommBank Business Line of Credit

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CommBank Business Line of Credit
Upfront Fee
$600

Summary

There’s no limit to how much you can borrow. Your interest rate will depend on the type of security offered.

  • The Commonwealth Bank no longer offer a business line of credit. Click here to learn more about alternative line of credit products.

CommBank's Business Line of Credit is designed as a long-term debt facility, which means that you can use it to manage your ongoing cash flow. The minimum loan amount is $50,000, and there is no maximum loan amount. You will only have to pay interes on the funds you use. Your interest rate is variable, meaning that it can change from month to month. How much you pay in interest is also dependent on the type of security offered. If you offer residential security, your interest rate will be 5.23% p.a. The rate is higher for other types of security, starting from 7.81%. With a secured loan, you run the risk of losing your asset if you’re unable to pay your loan. An upfront fee of $600 applies and there is also a monthly account-keeping fee.

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Details

Product details

Product Name CommBank Business Line of Credit
Min. Loan Amount $50,000
Max. Loan Amount No maximum amount
Loan Security Secured
Upfront Fee $600

How does the CommBank Business Line of Credit work?

In order to apply for this line of credit, you must talk to a business banker from Commonwealth Bank – either a representative in a branch or over the phone. You also have to have a business account with CommBank to have access to the funds. You can apply for a minimum amount of $50,000.

Features of the CommBank Business Line of Credit

There are many features that come with this line of credit, such as:

  • Ease of access. You can easily access the funds up to your approved limit. You no longer need to renegotiate or contact your relationship manager in order to do this. You can access your funds via NetBank and CommBiz, as well as through ATMs, EFTPOS, via cheque or over the phone. In addition, you can withdraw funds through the Commbank app or in a branch. You definitely have a lot of options to choose from in order to access your business funds.
  • Large minimum amount. You can apply for a minimum of $50,000 which is a lot of capital for future expansion or a potential small business investment.
  • Convenience. With this line of credit, your credit facility and your transaction account are merged into one, which allows you to manage your money with ease. You no longer need to switch between accounts as they have all been consolidated into one.
  • Variable rate. This account comes with a variable rate of interest. The rate you will pay is dependent on the type of security offered. For example, if you offer residential security for the line of credit, your interest rate is 5.23% p.a. whereas if you offer other security, your rate will be 7.81% p.a.
  • Different types of security. You can offer different types of security for this line of credit, such as cash or residential property.
  • No set repayments. There are no set repayments which means you can tailor the repayments to suit the cash flow of your business
  • Ability to redraw. You are able to redraw funds whenever you need them, up to the limit for which you've been approved
  • Only pay interest on what is used. You save on interest costs as you only pay interest on the funds that were used.

How much does the CommBank Business Line of Credit cost?

The type of fees you can expect to pay on this line of credit include:

  • Application fee. The application fee is $600.
  • A customer interest rate margin. This depends on how much you apply for and what type of security is offered.
  • A monthly account-keeping fee. You'll be informed about this once your application has been approved.
  • Interest costs. With this, you only pay the interest on the funds you've used. This fee is dependent on the rate that has been set for your line of credit.

If you do have any questions about what types of fees will be offered with this line of credit, your business relationship manager will be happy to answer your questions.

How to apply for the CommBank Business Line of Credit

In order to check whether you are eligible, click on "Go to Site" and ensure you meet the following:

  • Be a registered business in Australia.
  • Be a Commonwealth Bank member. Before applying for the line of credit, make sure you have a business account already set up.

The documents that you need for the line of credit include:

  • A business plan. It should include the usual details, andshow future growth opportunities for your business.
  • Financial statements. Your documents should show that you have the assets to serve as security against the line of credit, whether it be cash or residential property.

With a revolving door type of credit offered by Commbank, it's easy to see why this could potentially meet your business needs. However, compare other business lines of credit to ensure that you get one that suits your business.

Comparison of other business loans

Whilst we don't directly compare the CommBank Business Line of Credit, compare other business loans offering similar features.

1 - 6 of 6
Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Lumi Unsecured Business Loan
$5,000
$300,000
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
Valiant Finance Business Loan Broker
$5,000
$20,000,000
3 months to 7 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 80 lenders. Loans between $5,000 and $20 million are available. Request a call – your loan can be funded in 1 business day.
ebroker Business Loan
$5,000
$5,000,000
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
ScotPac Boost Business Loan
$10,000
$500,000
3 months to 3 years
$0 application fee
A business loan for any industry. Borrow between $10,000 and $500,000, with approved loans funded within 24 hours. Minimum monthly turnover of $10,000 and 1 year of trading history required.
Max Funding Unsecured Business Loan
$3,000
$30,000
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Prospa Business Loan
$5,000
$500,000
3 months to 3 years
3.5% origination fee
Small business loans are available from $5,000 - $500,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $5,000 is necessary.
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