Heritage Bank Fully Drawn Business Loan

How does a business loan from Heritage Bank work?

Heritage Bank's Fully Drawn Business Loan is a flexible business loan for larger business purchases and long-term cash-flow management. There is no limit to the amount of funds you can borrow with this loan. It depends on your business needs and the security you can provide. Loans can be secured with either a residential or non-residential property.

You can choose between fixed or variable repayments.

What features does Heritage Bank offer with its Fully Drawn Business Loan?

As the Heritage Bank business loan can be either fixed or variable in rate, we'll outline the features separately.

Fixed rate loan:

• High loan amount. The preferred minimum amount for this loan is $20,000, and there is no maximum.
• Security. This loan can be secured by either a residential or non-residential property. Your level of security will determine your loan maximum.
• Loan term. Fixed rate loans are available on terms from 1-5 years.
• Interest rate. The interest rate will depend on the loan term and on the type of security that you provide.
  

  	Residential Security	Non-residential Security
  1 year fixed	6.04%	7.04%
  2 year fixed	5.99%	6.99%
  3 year fixed	5.89%	6.89%
  4 year fixed	5.89%	6.89%
  5 year fixed	5.89%	6.89%

• Flexible repayments. You can choose between interest-only or principal and interest repayments and repay weekly, fortnightly or monthly. You can also match your repayments to your company's cash flow.
• Redraw facility. There is a redraw facility available with this loan upon request.
• Penalty-free extra repayments. You can make additional payments to your loan without paying a penalty.
• Break fee. If you pay off the fixed term loan early, you may be subject to a break fee.

Variable rate loan:

• High loan amount. The preferred minimum amount for this loan is $20,000, and there is no maximum.
• Security. This loan can be secured by either a residential or non-residential property. Your level of security will determine your loan maximum.
• Loan term. Variable rate loans are available on terms from 1-25 years for loans with residential security, and 1-15 years with other security types.
• Interest rate. The interest rate will depend on the type of security that you provide.
  • Residential security. 7.10% p.a.
  • Non-residential security. 7.84% p.a.
• Flexible repayments. You can choose between interest-only or principal and interest repayments and repay weekly, fortnightly or monthly. You can also match your repayments to your company's cash flow.
• Redraw facility. There is a redraw facility available with this loan upon request.
• Penalty-free extra repayments. You can make additional payments to your loan without paying a penalty.
• No break fee. There is no break fee with a variable rate loan.

How much does the loan cost?

How much you pay for the loan will depend on a number of deciding factors. These include the amount of money that you borrow, the rate type and the loan term as well as factors regarding your business and/or personal circumstances. Here's a general outline of the fees that you can expect with this loan:

• Monthly administration fee. A fee of $20 must be paid monthly.
• Redraw fee. A processing fee of $20 is payable if you choose to access a redraw facility.
• Early exit fee. If you exit the loan early, you will have to pay a fee of $250.
• Break fee. If you pay off a fixed loan early, you may have to pay a break fee. There is no break fee for variable rate loans.

For more information on these fees, please contact the lender directly.

How to apply

This loan is only available to businesses. This means that you will have to have an active ABN or ACN to qualify for this loan and be an owner, partner or director of a company. It is also a secured loan, so you will have to be either an owner of a residential property or another qualifying asset to be eligible for this loan. You will also have to meet the following criteria:

• Be 18 years old or above
• Be an Australian resident or permanent citizen

Prospective applicants should also be aware that they will have to contact Heritage Bank directly before they can fill out an application form. Before applying for a loan, it's always a good idea to compare business loans.