Outstanding Value Business Loans and Overdrafts: 2018

Canstar has revealed the 2018 Business Loans and Overdrafts Star Ratings, rating 90 total products from 18 different lenders.

Overall, 8 term loans and 9 overdrafts received a 5-Star rating in this year’s release.

Canstar’s Business Loan Star Ratings use a sophisticated and unique ratings methodology that compares both cost and features across business loan products. Our star ratings create a shortlist of products to help consumers narrow their search, with 5-Stars indicating products that provide outstanding value.

In this year’s research, Canstar rated six types of business loans and overdrafts:

  1. Term Loan – Residentially Secured
  2. Term Loan – Commercially Secured
  3. Term Loan – Unsecured
  4. Overdraft – Residentially Secured
  5. Overdraft – Commercially Secured
  6. Overdraft – Unsecured

Without further ado, the products that received 5-Stars for each category are as follows.

5-Star rated business loans

Canstar assesses business loans based on fees and costs as well as features.

The products displayed in the tables below represent a snapshot of 5-Star products for the type of business loan stated. Please note the products displayed are based on a loan amount of $250,000 in NSW and are sorted by Star Rating (highest to lowest).

Term Loans – residentially secured

CANSTAR Outstanding Value Business Loan
ANZ Suncorp Bank
Business Mortgage Loan Variable Business Essentials (Residential Security)

Term Loans – commercially secured

CANSTAR Outstanding Value Business Loan
ANZ BOQ
Business Loan Variable Term Loan Variable

Term Loans – unsecured

CANSTAR Outstanding Value Business Loan
ANZ St. George / BankSA / Bank of Melbourne
Business Loan Variable (Unsecured) Business Loan Variable

You can compare and learn more about business loans here:

Compare Business Loans

5-Star Rated Business Overdrafts

Canstar assesses business overdrafts based on fees and costs as well as overdraft features and functionality.

Related article: Business Start-up Programs in Australia

The products displayed in the tables below represent a snapshot of 5-Star rated business overdraft products for the type of business loan stated. Please note the products displayed are based on a loan amount of $250,000 in NSW and are sorted by Star Rating (highest to lowest).

Overdraft – Residential Security

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CANSTAR Outstanding Value Business Loan
St. George / BankSA / Bank of Melbourne Westpac
Business Maximiser Equity Access

Overdraft – Commercial Security

CANSTAR Outstanding Value Business Loan
Westpac ANZ
Business Equity Access Business Credit Facility

Overdraft – Unsecured

CANSTAR Outstanding Value Business Loan
Bank Australia Westpac Bankwest
Commercial Overdraft Business Overdraft Bankwest Zero Overdraft

You can compare and learn more about business overdrafts here:

Compare Business Overdrafts

How does Canstar rate business loans & business overdrafts?

These products are rated based on their comparative pricing and positive features offered. To arrive at a total score, Canstar applies a weight against the pricing and feature scores, which will vary from profile to profile. For more information about the weighting, refer to the methodology document.

Canstar Research considers the following features when evaluating a business loan or overdraft’s score:

  • Lending terms (min. loan amount, repay frequency, etc)
  • Security requirements (unsecured, residential, commercial, etc)
  • Loan purpose availability (borrowing entity and purpose such as franchise, development finance, etc)
  • Overdraft terms (interest payment when in credit, loan review periods, etc)
  • Redraw facility (facility available, min. redraw, offset account, etc)
  • Portability (transfer to another security)
  • Repayment capabilities (lump sum allowed, balloon payments, etc)
  • Split and switch facilities (split option, split fee, switching allowed from variable to fixed, etc)
  • Overdraft functionality (overdraft service fee, number of free transactions, etc)

For a more detailed pricing and features breakdown for each type of loan, see Canstar’s Business Loans Methodology for 2018.

Eligibility for Canstar’s Business Loans Star Ratings

Canstar strives to rate as wide a range of business loans and overdrafts as possible in its Star Ratings, yet not all products meet our eligibility requirements.

To be eligible, a business loan product must be:

  • Available for residential and commercial security purposes
  • A variable rate product
  • available for:
  • $250,000 and $500,000 for term loans
  • $50,000 and $125,000 for overdrafts

Compare business loans, overdrafts and other financial products with Canstar:

Compare Business Loans with Canstar

Compare Business Overdrafts with Canstar

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