Secret loan deals lenders don’t tell you

So you think you know how to hunt the best loan deals. But did you know that you could be missing out on some of the juiciest business loan deals on offer?

That’s simply because banks don’t always advertise their lowest business loan interest rates so it’s difficult to know what’s competitive and what’s not.

Also, interest rates on most business loans are negotiated depending on the size of the loan, equity position and overall strength of the application.

But don’t despair. We’ve scoured the most competitive business loan interest rates on offer, where lenders have set pricing.

Business loans

Residentially secured business loan interest rates

Loan Category Interest Rate Contact Us
Variable 3.80% Apply
1 year fixed 4.29% Apply
2 years fixed 4.19% Apply
3 years fixed 3.75% Apply
5 years fixed 3.99% Apply

Did you know that some lenders can offer lower business loan interest rates if your mortgage is secured by a residential property? We can help you get these discounted rates!

Commercially secured loans

Loan Category Interest Rate Contact Us
Variable 4.39% Apply
1 year fixed 4.60% Apply
2 years fixed 4.51% Apply
3 years fixed 4.37% Apply
5 years fixed 4.80% Apply

SMSF business loans

Loan Category Interest Rate Contact Us
Variable 4.85% Apply
1 year fixed 4.60% Apply
2 years fixed 4.51% Apply
3 years fixed 4.37% Apply
5 years fixed 4.80% Apply

Since there’s not much consistency in SMSF business loan interest rates, it’s recommended that you speak with a mortgage broker before accepting your bank quote.

Our mortgage brokers are credit specialists and can help you find the most competitive rates. Please call us on 1300 889 743 or complete our free online assessment form to get a free quote.

Low doc loans

Low doc business loan interest rates

Loan Category Interest Rate Contact Us
Variable 5.39% Apply
1 year fixed 5.09% Apply
2 years fixed 5.19% Apply
3 years fixed 5.29% Apply
5 years fixed 5.54% Apply

If you’re operating a small businesses or self employed, you might find low doc business loans ideal. That’s because you can get a business loan without providing tax returns and financial statements.

Lease doc business loans

Loan Category Interest Rate Contact Us
Variable 5.54% Apply
1 year fixed 5.29% Apply
2 years fixed 5.39% Apply
3 years fixed 5.49% Apply
5 years fixed 5.74% Apply

No doc business loans

Loan Category Interest Rate Contact Us
Variable 6.30% Apply
1 year fixed POA Apply
2 years fixed POA Apply
3 years fixed POA Apply
5 years fixed POA Apply

Mostly non-bank and private lenders provide no doc business loans. The pricing varies, depending on the lender you qualify with, your credit history, loan size and the overall risk of your application.

BBSY Loans

Bank bill business loan interest rates

Term BBSY Rate Margin Your Rate Contact Us
30 day 1.68% 1.90% 3.58% Apply
60 day 1.78% 1.90% 3.68% Apply
90 day 1.79% 1.90% 3.69% Apply
180 day 2.00% 1.90% 3.9% Apply

A bank bill business loan is suitable for large businesses borrowing huge amounts, usually over $5 million. However, it is possible to get a bank bill business loan for amounts just over $2 million.

Please note that for the above rates, we’ve assumed that you have a low risk application.

Reference rates

Current RBA cash rate 1.50%
Last RBA rate change -0.25% on 7/8/2013

You can check out RBA’s website for details regarding the current RBA cash rate.

What are bank bill loans?

Bank bill business loans are a cheaper way to borrow for your business. If you’re a large business borrowing a big amount, usually over $5 million, you may get access to wholesale pricing.

This way you’ll have a cheaper interest rate that’s only a margin above the Bank Bill Swap Bid Rate (BBSY). The BBSY is the rate at which the bank borrows money.

Generally, your interest rate is the BBSY rate plus 0.05%. A customer margin is then added on top of this for risk management purposes.

Banks calculate the customer margin based on the overall risk of the loan application. Higher risk would mean a higher margin, and each bank may calculate this in their own way.

The interest rate changes every few months because your loan will be rolled over to the new BBSY rate plus your customer margin after your 30, 90 or 180-day term ends.

You can check out the bank bill loans page to learn more about this.

Where can I get the best deals?

Business loan interest rates aren’t always consistent among lenders. This is because different lenders perceive your risk as a borrower differently.

By choosing a lender that can consider you to be a low risk, you can get a great deal. We may even be able to negotiate a low interest rate for you.

To find out how we can help you get the best deal for your business loan, fill in our free online assessment form or call 1300 889 743 to speak with one of our specialist mortgage brokers.

  • Floyd

    Since bank bill rates are wholesale pricing, I’ve heard that you’ll need to borrow a lot to qualify for this. My friend said he was allowed this as he was borrowing $5.5 mils. Is $4-5 mil the amount you need to borrow to qualify for these rates?

  • Hi Floyd,
    Bank bill loans are perfect for large commercial property investors or medium to large businesses so if you’re borrowing $5 million or above then this may be the best type of facility for you. However, it is actually possible to get a bank bill loan for loans as small as $2 million although you may need to negotiate with your lender for this.

  • Sal

    Do you also have residential interest rates published just like this one?

  • Hello Sal,
    Yes, we do. You can check out the home loan interest rates page for them. Here’s the link:

  • Nelson L

    Is there any way that we can avoid business loan covenants?

  • Actually, yes. There are a few ways that may be able to avoid business loan covenants but this will largely depend on your application and the lender you choose. You can read about this in detail here:

  • Steve

    Hi Experts,
    Can a residential property bought with residential home loan be used to run a full business from that property. and what are the solutions?

  • Hi Steve,
    This is a grey area. Firstly it’s best to check with council as they may have zoning restrictions and could boot you out of the property if it’s used incorrectly.
    For some of our lenders as long as the property can be sold or rented as a home without any modifications then they’ll accept it as security for a normal home loan.
    If the property is going to be modified and will become unusable as a home then typically this would require a commercial loan.

  • Steve

    Hi Experts,
    Thank you, I will post new post soon.

  • Steve

    Hi Experts,
    Can you suggest any lenders.
    Thank you

  • Hi Steve,
    Yes we can but you’d need to engage our services as your mortgage broker. Under the NCCP act we’re required to go through a process where we make reasonable enquiries about your objectives and situation then verify your income and then we can make a recommendation.
    The good news is that our services are free. We’ll only charge a fee if you repay the loan in the first 2 years. You can contact us here