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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Last updated 5 December 2025Important disclosures

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  • About ScotPac
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    Whether you’re looking for a quick cash boost for your business or are ready to invest in growth, ScotPac offers a range of unsecured and secured loans from $10,000 up to $500,000. For loan terms of 6 months to 3 years. No application or account keeping fees to pay. Funds available in 24 hours or less once approved. Repayment options available.

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  • About Prospa
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    Prospa uses risk-based pricing to determine your interest rate. They look at factors including your industry, years in business, cash flow, creditworthiness and the overall financial health of your business.

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    3.5%
    from 24 hours
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  • About NAB
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