With the interest rates remaining at a historical low, following the Reserve Bank of Australia's announcement to hold the cash rate at 1.5%, it has never been a better time to review your business loans.
Being the 13th consecutive hold, many economist expect that this will continue through the first quarter of 2018, but then expect to see a full 25 basis points rise by the end of July. The question, however, still continues to be raised - Why are Banks not passing on these savings to small to medium sized businesses?
One of the biggest issues in the system currently being faced is Businesses are not fluidly provided with these savings, rather the Banks maintain rates with customers and pocket the difference. Only when asked the question, are business owners provided with a more competitive rate. Surely there needs to be some level of expectation that Business Bankers will ensure their customers are provided with the best deal available. The problem here - their salaries are paid by the same banks that Businesses are financed by.
With the likes of Aussie and Mortgage Choice in the residential space, home owners have the comfort of knowing someone is on their side. The market is showing a clear need for a similar agent to represent the small business market when tackling and negotiating the right deal with Banks. Lending and funding requirements are becoming more and more complex making it harder and harder for business owners to understand how to structure their business and where to turn to in order to make sure they are getting the best deal.
Want to know more, contact Just Business Financial Services on 1300 96 25 95.
Business and Commercial Loans
Business loans are the primary source of funding when you need the money for a term longer than one year. The interest rate used in loan is based on a number of bank based matrices, including the type of security provided, the purpose of the loan, and the source of income used to service the loan. READ MORE>
There are many types of asset finance offered by banks. Choosing the right option has both cashflow and tax implication. READ MORE>