Banks discount rates for small business
09/09/2011
Competition in the sluggish business lending market has forced lenders to trim their margins.
The rate gap between home loans and residentially secured business loans has narrowed this year. In 2009 there was a 1.29 per cent average difference, but that gap has halved over the past 18 months.
Bankwest’s Business Low Rate Loan, which is priced at 7.65 per cent is the cheapest business loan on the comparison websites.
Comparing business loan rates with home loan rates is difficult. Most lenders discount their home loan rates, but they may add a risk margin to their business loan rates.
Source: Banking Day
Previous Article Next Article
