- 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.