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:
- Term Loan – Residentially Secured
- Term Loan – Commercially Secured
- Term Loan – Unsecured
- Overdraft – Residentially Secured
- Overdraft – Commercially Secured
- 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
|Business Mortgage Loan Variable||Business Essentials (Residential Security)|
Term Loans – commercially secured
|Business Loan Variable||Term Loan Variable|
Term Loans – unsecured
|ANZ||St. George / BankSA / Bank of Melbourne|
|Business Loan Variable (Unsecured)||Business Loan Variable|
You can compare and learn more about business loans here:
5-Star Rated Business Overdrafts
Canstar assesses business overdrafts based on fees and costs as well as overdraft features and functionality.
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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
|St. George / BankSA / Bank of Melbourne||Westpac|
|Business Maximiser||Equity Access|
Overdraft – Commercial Security
|Business Equity Access||Business Credit Facility|
Overdraft – Unsecured
|Commercial Overdraft||Business Overdraft||Bankwest Zero Overdraft|
You can compare and learn more about business overdrafts here:
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: