The ABC has announced that it will offer eligible small businesses a zero-interest business loan with a three-month repayment holiday.
The two-year “Business Boost” unsecured loan is available for up to $100,000 to eligible existing CBA customers through the bank’s self-service digital lending platform, BizExpress Online.
No interest is payable throughout the term of the loan. Instead, companies will have to pay a fee of $200 for every $5,000 they borrow, or an interest rate of 4%.
Mike Vacy-Lyle, director of corporate banking at CBA Group, said the Business Boost loan has no hidden costs for customers.
“[Businesses] want simplicity and certainty during a very difficult time. We have worked to deliver a unique offering that will provide just that, with no hidden fees, no variable rates and, in fact, no interest rates at all,” Mr. Vacy-Lyle said.
“We are giving businesses quick access to cash to help them accelerate their reopening plans.
“The various restrictions associated with COVID-19 have meant that many small businesses have struggled to generate much revenue over the past few months, and these businesses now need to be able to restock and rehire.
“An example of how this meets customer needs is the gym owner who accessed our interest-free loan to help them manage a quieter holiday period while preparing for a new year. busier.
“They told us they had previously been hesitant to take out a variable interest rate loan, but felt reassured by the Business Boost loan because they know exactly what they have to pay over the life of the loan. and do not need to make their first repayment until March 2022, when business will be more regular.
To access the loan, customers must meet the eligibility criteria of the government’s SME recovery program: small and medium-sized enterprises with turnover of up to $250 million, self-employed persons and profit-making organizations. non-profit and which have an ABN.
A set-up fee is added to the principal of the loan and will be paid in installments as part of the principal from the creation of an account.
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