Compare the Interest Rates on Different Types of Business Finance
Interest rates vary across different products and it can be challenging to access multiple sources for the purpose of comparison. We’ve brought it all together in this one handy interest rate comparison chart with a repayment calculation capability. While interest rates may differ from these, this is a great place to start your planning process.
| Loan Product | Interest Rate
Starts at:
|
Monthly Repayment |
|---|---|---|
| New Equipment Loan | 2.79% | $569.75 |
| Used Older Secured Equipment Loan | 4.50% | $612.5 |
| Business Loans - Unsecured | 7.99% | $699.75 |
| Business Loans - Secured | 2.95% | $573.75 |
| Overdraft - Non Bank | 9.95% | $748.75 |
| Chattel Mortgage | 2.79% | $569.75 |
| Operating Leases | 4.60% | $615 |
| Commercial Hire Purchase | 2.79% | $569.75 |
| Rent To Own | 9.95% | $748.75 |
Bad Credit Business Finance
When a business has a bad credit history or poor credit score, it can be a major impediment to securing finance. But it is not impossible. There are lenders that will offer cost-effective loans to organisations with bad credit and there are also measures that can be undertaken to improve their prospects of achieving an acceptable outcome.
We have connections with lenders that offer this type of loan, dependent on individual circumstances. Submit your loan request and we will provide the information.
Finance Purposes
It is possible for businesses with bad credit to secure finance for a range of purchases including:-
- Business car finance
- Equipment, machinery and other assets used in commercial operation
- Truck lending finance
- Boats and marine vessels to be used for commercial purposes
As this is a high-risk loan category, loans which include security such as cars and equipment are more likely to be achieved than unsecured loans where no security is available as guarantee against the loan.
Due to the high-risk nature of this type of loan, higher interest rates and stricter loan conditions usually apply.
Types of Loans
Depending on individual lenders and individual applications, bad credit loans are available for the full range of commercial loan facilities including:-
- Car Chattel Mortgage
- Commercial Hire Purchase
- Commercial Leasing
- Rent-to-Own
Business Lending Requirements
A business may be defined as a ‘bad credit’ applicant based on:-
- Credit history and credit score.
- Trading history.
- History of loan defaults.
The requirements for this type of loan will depend on individual lender guidelines. But as a guide, a business may need to provide:-
- ABN holder.
- GST status – being registered for GST is usually viewed more positively than not being registered for GST.
- Proof of ID
- Financial documentation. BAS statements, bank statements, business accounts and other records.
Improving Your Business Loan Application
There are a number of steps a business can take which may improve their bad credit application and as such attract a better interest rate and better loan outcome.
- Address issues on the credit history to improve the credit score. Review your credit report and apply to have eligible entries removed.
- Prepare detailed documentation as to how the business intends to meet the repayment obligations.
- Engage the services of a broker to source lenders that specialise in this type of loan and have the skills required to negotiate an acceptable outcome.
We are a hub for resources and information regarding even the most challenging finance scenarios. We have connections with lenders that offer bad credit and with brokers that may be able to assist you.
Connect with us for lenders and brokers that may be able to assist you with achieving bad credit loans.
