Look elsewhere for a better rate deal

Business banking customers have been warned that they cannot rely on the large banks to pass on rate cuts and they must look elsewhere for better deals on unsecured loans if they want a cheaper rate.

Writing for the Sydney Morning Herald, executive chairman of financial advisory specialist Yellow Brick Road,Mark Bouris, said that even non-bank lenders are a possibility when the economic times are tough.

"The hard truth is that you can't influence the major bank's decision to pass on a rate cut, but what you can do is look for a better deal," he wrote.

He also suggested taking full advantage of rate cuts when they do happen.

"If you're not struggling to make your payments, take the savings from the rate cut and put it straight back into your loan," Mr Bouris concluded.

Although the Reserve Bank of Australia is widely expected to slash rates next month, the business community has been told by AMP Capital Investors chief economist Shane Oliver not to expect their lenders to follow suit.

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