More banks raise business loan rates
BankSA, Bank of Melbourne and St.George have raised small business loan rates by 0.08%.
The three brands under the Westpac Banking umbrella have announced an increase in their rates for variable lending products for small businesses, following ANZ's lead from last week. BankSA, Bank of Melbourne and St.George will increase their interest rates for variable lending products for small businesses by 0.08%, along with increasing owner occupier and residential investment property rates.
Business borrowers will likely be watching the home loan rate changes as closely as mortgage holders, with Commonwealth Bank being the only lender so far not to include business rate changes to the home loan rate change announcements.
The increases are not likely to be welcomed by the business community so soon after the inquiry into the bank's treatment of small businesses. As recently as three weeks ago, the Australian Securities and Investments Commission (ASIC) and the Australian Small Business and Family Enterprise Ombudsmen (ASBFEO) teamed up to send a "clear message" to banks that their contracts need to comply with new legislation.
Unfair contract terms were just one of the issues discussed at the inquiry, in addition to insufficient loan sizes and inadequate notice given by banks that a loan would not be refinanced.
The business loan rate increases will come into effect on 3 April 2017.
Not sure what rates are competitive? Compare a range of business loan rates.
- Startup or sole trader? Sage on surviving small business tax time
- Six tips for small businesses as the EOFY approaches
- 5 small business tax tips from Xero you might not have heard of
- H&R Block’s Mark Chapman: How small businesses can stay ahead of the tax curve
- New Waddle feature to save businesses hours every week
Picture: Shutterstock
