The BetterBusiness Loan offered by the Commonwealth Bank can finance your new business initiative.
The Commonwealth Bank’s BetterBusiness Loan is ideal for those who need medium- to long-term capital to begin or expand your business. It also gives businesses the freedom to tailor a loan to their specific needs, with a varied loan term of 1 to 30 years, depending on options selected.
How does the BetterBusiness Loan work?
When applying for this loan you will be given four interest rate options to choose from, each with its own benefits. Two of the options allow you to secure property against this loan. For the fixed rate options available, the borrowing limit on this loan is a minimum of $25,000. For the residential secured loans there is a minimum of $100,000. The loan terms for the fixed rate options are from 1 to 7 years.
Features of the BetterBusiness Loan
There are a number of features with this loan, including:
- Four interest rate options to choose from:
- Fixed rate: Loan term from 1 to 7 years (or up to 10 years for agribusiness customers).
- Fixed rate residentially secured: Loan term from 1 to 5 years at a rate of 5.49%. Loan terms of four and five years have higher rates.
- Variable rate: Minimum loan amount of $25,000 with an interest rate of 7.81%.
- Variable rate residentially secured: A variable interest rate of 5.73%.
- Two different types of loans to choose from. You can either secure your residential property against this loan in order to get a lower interest rate and a larger borrowing amount or you can choose from the unsecured loan option that allows you to borrow less for a shorter loan term. The unsecured loans have a higher interest rate as there is no collateral being put against the loan.
- Varying interest rates. As listed above, there are a variety of different interest rate combinations available, which is something to keep in mind before applying.
- Varying loan terms. For variable rate loans, the minimum loan term is 1 year and the maximum is 30 years. For other fixed rate loans, the minimum term is 1 year and the maximum is 7 years.
- Varying borrowing limits. For fixed rate loans there is a minimum borrowing limit of $25,000. For residentially secured loans there is a minimum of $100,000.
- Flexible repayment options. This loan offers a variety of repayment options, including interest only, principal and interest, interest in advance (only available on fixed rate loans with a rate that is linked to the market) and a loan redraw option, which allows you to redraw on repayments made ahead of schedule at no extra cost.
How much does the loan cost?
There are a number of fees with this loan, including:
- A one-off loan establishment fee charged when you take out the loan
- A regular loan service fee charged monthly or quarterly
These fees are dependant on how much you decide to borrow and the type of security that is offered on the loan.
How to apply for the BetterBusiness Loan
Click on the ‘Go to site’ button and ensure you meet the following requirements before applying for this loan:
- You must have a Commonwealth Bank Account.
- You must be over 18 years of age.
- You must not have previously filed for bankruptcy.
- You must have an ABN or ACN.
- For a secured loan you must have a residential property to use as security.
The BetterBusiness Loan offered by Commbank can help expand your business but it’s important to consider whether this loan is right for your needs. Compare business loans before making a final decision.