The business loans offering great value

CANSTAR releases its annual Business Loans Star Ratings report today, comparing 90 business loan products, with 8 products receiving a 5 star rating.

“Small and medium businesses are driving jobs growth in Australia and must continue to do so,” said Federal Treasurer Scott Morrison earlier this month. And the combined actions of the federal government and the Reserve Bank mean that businesses have a double reason to borrow.

“Business were winners in this year’s Federal Budget and the good news is that, based on our analysis, they should also expect to benefit from the May cut in official cash rate,” said CANSTAR Research Manager Mitchell Watson.

“While lenders haven’t as yet passed through the rate cut from May this year, they can be expected to do so over the next few weeks. The vast majority of business lenders on our database passed on in full both the Feb 2015 and May 2015 rate cuts to their borrowers. The Federal Budget’s proposed tax incentives as well as a lower lending rate do put businesses in a win/win situation.”

It’s not all about the rates

While the interest rate business owners can secure on their lending will be top of mind, Mr Watson reminds borrowers to check the fees and features as well.

“The upfront fees in particular can vary significantly across loan products,” said Mr Watson.

“For example, for a term loan of $250,000 (residentially secured), our research found application fee costs ranging from $0 to $2,500. That’s a large variance for a relatively small loan. Additionally, ongoing fees on the same loan size varied from $0 to $480 per annum. On a residentially-secured overdraft, ongoing fees can be as high as $850 per annum.

“Borrowers should also consider features such as lending terms, the security that will be accepted, portability, redraw and offset as well.”

CANSTAR-Outstanding-Business-Loans-award-winnersWho offers outstanding value?

After researching 90 business loan products, CANSTAR has awarded a five star rating for outstanding value to the following products:

Overdraft – secured by commercial property
  • Bank Australia
  • St George Bank
Overdraft – secured by residential property
  • Commonwealth Bank
  • St George Bank
Term Loan – secured by commercial property
  • ANZ
  • Suncorp Bank
Term Loan – secured by residential property
  • ANZ
  • Suncorp Bank

CANSTAR congratulates all winning business loan providers. Further details can be found in the 2016 Business Star Ratings Report

 

For further information:

Justine Davies

Editor in Chief

Ph. (07) 3837 4151 /  0400 127 733

justine.davies@canstar.com.au

 

About CANSTAR

CANSTAR provides Australia’s interactive online research service in consumer and business finance. Founded in 1992, CANSTAR Pty Limited is Australia’s researcher of retail finance information for over 250 institutions such as Banks, Building Societies, Credit Unions, Finance Companies, Brokers, Mortgage Originators, Life Companies and finance related Internet Portals. CANSTAR customers use the extensive database for competitor analysis as well as a means of disseminating their product range. CANSTAR also distributes this information to print and electronic media for publication and to Agents, Accountants, Brokers and Internet Portals for use in advising their clients.

What are the CANSTAR star ratings?

CANSTAR researches, compares and rates the suite of banking and insurance products listed below. Results are freely available to consumers who use the star ratings as a guide to product excellence. The use of similar star ratings logos also builds consumer recognition of quality products across all categories. Please access the CANSTAR website at www.canstar.com.au if you would like to view the latest star ratings reports of interest.

Account based pensions Managed investments
Agribusiness Margin lending
Business banking Online banking
Business life insurance Online share trading
Car insurance Package banking
Credit cards Personal loans
Deposit accounts Reward programs
Direct life insurance Superannuation
First home buyer Term deposits
Health insurance Travel insurance
Home & Contents Travel money card
Home loans Youth banking
Life insurance

 

 

COMPLIANCE DISCLOSURE and LIABILITY DISCLAIMER

To the extent that the information in this report constitutes general advice, this advice has been prepared by CANSTAR Research Pty Ltd A.C.N. 114 422 909 AFSL and ACL 437917 (“CANSTAR”).  The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs.   Before you decide whether or not to acquire a particular financial product you should assess whether it is appropriate for you in the light of your own personal circumstances, having regard to your own objectives, financial situation and needs.  You may wish to obtain financial advice from a suitably qualified adviser before making any decision to acquire a financial product.  CANSTAR provides information about credit products. It is not a credit provider and in giving you information it is not making any suggestion or recommendation to you about a particular credit product.  Please refer to Canstar’s FSG for more information.
The information in this report must not be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, or stored for subsequent use for any purpose, in whole or in part, in any form or manner or by means whatsoever, by any person without CANSTAR’s prior written consent. All information obtained by CANSTAR from external sources is believed to be accurate and reliable. Under no circumstances shall CANSTAR have any liability to any person or entity due to error (negligence or otherwise) or other circumstances or contingency within or outside the control of CANSTAR or any of its directors, officers, employees or agents in connection with the procurement, collection, compilation, analysis, interpretation, communication, publication, or delivery of any such information. Copyright 2014 CANSTAR Research Pty Ltd A.C.N. 114 422 909.  The word “CANSTAR”, the gold star in a circle logo (with or without surmounting stars), are trademarks or registered trademarks of CANSTAR Pty Ltd.   Reference to third party products, services or other information by trade name, trademark or otherwise does not constitute or imply endorsement, sponsorship or recommendation of CANSTAR by the respective trademark owner.

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