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Will I pay a higher interest rate?

Will I pay a higher interest rate?

  • Interest rates: Variable, fixed, split and bank bill swap rates (BBSY) available.
  • Additional repayments: For variable business loans only.
  • Redraw facility
  • 100% offset account

For example, banks usually restrict the Loan to Value Ratio (LVR) of commercial loans up to $1,000,000 to 80% of the property.

Loans up to $5,000 company web site,000 typically have LVRs capped at 70%. In this case, your guarantor would need to put up 30-35% of the property value unless you were able to put in some of your own funds.

When does it make sense to use a guarantor?

Finance to buy an existing business or to kick-start your own start-up will always require you to have your own funds or equity in a property that you own as security for the loan amount.

Typically, if you need a loan to fund the purchase of a freehold going concern, the commercial property itself can be taken as security for the loan amount.