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

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.

Compare business loan

Rates updated daily. Advertiser disclosure.

• Promoted

  

  Heritage Bank

  Fully Drawn Loan

  Interest Rate

  2.95% p.a. variable

  Upfront Fee

  Negotiable

  Funding speed

  Varies

  Go to site
• Promoted

  

  Timelio

  Invoice Finance

  Interest Rate

  On Application

  Upfront Fee

  $0.00

  Funding speed

  24 hours

  Go to site
• Promoted

  

  Prospa

  Business Loan

  Interest Rate

  Interest rates vary based on risk. Rates range from 14.95% to 24.95% p.a.

  Upfront Fee

  3%

  Funding speed

  from 24 hours

  Go to site
• Promoted

  

  Heritage Bank

  Line of Credit

  Interest Rate

  3.75% p.a. variable

  Upfront Fee

  Negotiable

  Funding speed

  Varies

  Go to site
• Promoted

  

  ScotPac

  Invoice Finance

  Interest Rate

  from 6.00% p.a.

  Upfront Fee

  On Application

  Funding speed

  from 24 hours

  Go to site