SA businesses 'benefiting from fixed interest rates'

By Mozo ·

Companies in South Australia are benefiting from fixed interest rates when taking out business loans.

According to National Australia Bank state general manager (NAB business) Joanna White, rates on three to five-year terms are now at record lows.

She told the Advertiser that firms have been responding positively to the fixed-rate environment, particularly organisations in the hospitality, property and agribusiness sectors.

"With fixed rates providing businesses with greater security in their longer-term arrangements, many of these businesses are seeking long-term certainty around their borrowing costs," she was quoted as saying.

This is great news for business banking customers who have been reluctant to take on more debt up until now.

Many enterprises simply cannot expand unless they have access to credit and it seems that corporate confidence levels are starting to grow.

Competition in the business loans market is intense and a recent study conducted by Roy Morgan Research showed that smaller lenders are becoming more popular among entrepreneurs.

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