What is a standard secured bank loan?
A standard business loan is secured against real assets* (vehicle, house, land, commercial premises, or other business assets). As the security on this loan acts as a guarantee for the bank, interest rates are lower.
A standard secured bank loan can be great for raising working capital, purchasing commercial property, expanding, re-financing your business, or anything else.
*The bank will value the asset at the amount they could sell the asset for, not what you think they are worth or what you paid for them.
What do I need to get this type of finance?
- Property or other business assets are needed as security
- Good credit history
- Deposit for assets as required
- Evidence of a good trading history (profit, balance sheet, etc) relative to the amount borrowed
What are the benefits of a standard bank loan?
- Borrow more than with an unsecured loan
- Lower interest rates
- Options to pay interest only for part of the repayment term (or a variation of this)
- Options for fixed or variable interest rates or a combination over the term of the loan
- Fixed payment amounts and frequency, so you know exactly what you owe and when
- Redraw and offset options
| The features of a Standard Secured Bank Loan | |
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| Loan Amounts |
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| Security Requirements |
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| Loan Terms |
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| Repayment Terms |
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| Indicative Interest Rate % |
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| Loan to Value Ratio LVR |
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