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What is a multi-option facility on business loans?

Posted: Tue May 24, 2016 12:15 pm
by marvelous mike
I have a few business loan products with my lender and I was suggested that I consider getting a multi-option facility. I was told that this was basically a facility to house all other facilities but I didn't quite understand it too well. Does anyone have any experience using a multi-option facility?

Re: What is a multi-option facility on business loans?

Posted: Tue May 24, 2016 4:02 pm
by Otto Dargan
Hi marvelous mike,

A Multi-Option Facility or MOF can help if your business is growing or your run an import or export business, where there can often be a heavy strain on your cash flow.

A MOF is basically like a professional package for various business loan products / facilities - it is a solution for business owners to put all of their commercial loan and business loan facilities "under one roof" with one overall limit.

So if you have a combination of trade finance, business overdraft and factoring, you can get a lot of flexibility when managing your business finance by using a MOF.

The main benefit of this is that it can help you avoid a lot of the back and forth when it comes to dealing with your bank when you want to extend or reduce limits on separate loan facilities for your business.

Please note though that this may not necessarily be a cheaper option than having separate facilities open.

You can check out our website to learn more or you can discuss whether or not it can be helpful for your situation by speaking with one of our business loan specialists on 1300 889 743 or by enquiring online.

Cheers,
Otto

Re: What is a multi-option facility on business loans?

Posted: Wed May 25, 2016 7:58 am
by marvelous mike
Hmm… convenience for a little extra $. I'll research this a bit more and will definitely speak with one of you guys before I speak with my bank. Thanks.