Heritage Bank takes the axe to business loan rates with sizeable cuts

By Tom Watson · · 2 min read
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The recent drop in business loan rates has continued with Heritage Bank reducing a number of secured loan offers by between 0.09% and 0.91% earlier this week. 

Among the highlights, Heritage reduced interest rates on its residentially secured one year fixed business loan to 4.10% (down 0.49%) and its variable residentially secured business loan to 4.15% (down 0.64%).

In fact, as of the time of writing, the new 4.15% interest rate offered by Heritage Bank on its Variable Loan is one of the lowest Variable Residentially Secured Business Loan currently in the Mozo database.

The move from Heritage Bank on Tuesday was just the latest in a series of cuts made to business loan rates over the past year, with competition in the space heating up following reductions from both big banks and challenger banks. 

As of January 1, 2020, the average Variable Residentially Secured Term Business Loan the banks being tracked in the Mozo database was 5.05% - 0.47% lower than the average rate at the same time in 2019. 

Of course, the period in between coincided with three Reserve Bank interest rates cuts in June, July and October which saw the official cash rate plummet from 1.50% to today’s 0.75%. 

And with speculation high that even more RBA cuts could come in 2020 - potentially as soon as the February meeting - it’s possible that business loan rates could fall even lower.  

RELATED: Why 2020 could be the best year to take out a business loan

In the meantime, if your own business is looking for some additional funding then don’t miss some of the hot loan offers in the table below. Or for even more options, including loans from both bank and online lenders, head on over to the Mozo business loans comparison hub.

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    About ScotPac
    Boost Business Loan - powered by Business Fuel

    Get secured or unsecured business funding for up to $250K. For loan terms of 6 months to 2 years. No application or account keeping fees to pay. Minimum loan amount is $10,000. Get approval in 24 hours. Loans over $100,000 require security. Minimum annual turnover of $120K.

    Interest Rate
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    from 14.00% p.a.
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    About Lumi
    Unsecured Business Loan

    A straightforward business loan with no hidden Lumi fees or charges. Speedy application and approval process with fast access to funds according to Lumi.

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    from 9%
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    Within same day
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    About Bizcap
    Unsecured Business Loan

    Business Loans from $5,000 to $2,000,000 with high approval rates. Access to funds in as little as 3 hours. Cash flow friendly repayments and open minded offers.

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    3%, starting at $399
    from 3 hours
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    About Lumi
    Lumi Lux

    Lumi Lux™ is an innovative rate-reducing business loan that rewards customers for a good repayment history over the loan term by dropping interest rates by 25 basis points every six months (T&Cs apply). The loan is for more established businesses with minimum $2M revenue.

    Interest Rate
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    from 14% to 20%
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    Within same day
    Go to site
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    About OnDeck
    Short Term Business Loan

    Unsecured business loans from $10,000 - $250,000, over 6 to 24 months. Online application takes only 10 minutes and you'll know if you're approved within hours. Apply now.

    Interest Rate
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    On Application
    3.00%
    from 24 Hours
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