It might be winter in some parts of the world – but here in Australia, we’re currently enjoying pretty scorching weather if we do say so ourselves. But what has the weather got to do with our first post of the New Year? Well, quite a lot actually! Every summer lending agencies just so happen to re-evaluate their policies, terms and conditions – and what better way to start 2017 than by applying for a little financial support to cover the costs of your next business venture?
What Does 2017 Have Planned?
For those of you weighing up your options are far as your equipment financing potential is concerned, you’ll be happy to hear that many banks out there are in the process of shifting their interest rates for the better. Even private lending agencies are finding themselves feeling forced to keep their rates as low as possible!
We’re not talking about interest here however, we’re referring to AAPR in specific – the type of rates that are applied to equipment and business financing in general. In fact if you’re thinking of applying for a loan this year (particularly before March where rates are due to fluctuate again), we’d definitely recommend getting to know a little bit more about average annual percentage rates.
In 2017 the Reserve Bank of Australia is steadily filtering funds into building societies and as a result, lending agencies can expect to reap a few of these rewards down the line. Although they won’t be quite as governed as other more official lenders (including banks), they will still feel the burn as far as keeping their rates low is concerned.
What Sort of Rates Can You Expect?
This will depend on when you apply, the amount that you are hoping to borrow and the type of lender that you’re actually applying to. In the majority of instances, banks are extending rates of between 3.49% and 3.99% right now – but this is primarily for loans on homes, commercial properties and other types of physical premises.
On the other side of the coin, and where equipment financing options are concerned, lenders are proposing representative rates of up to 14% – but we’ve heard about a few particularly beneficial rates of just 7% from two specific lenders in Melbourne. If you’re in a position to make an application in the near future then you might want to consider getting in touch with us, as we make a point of comparing the best deals on non-mortgage loans out there – all of which can be a great benefit to your financial requirements this 2017.
Tundra - Experts in Business Finance
(03) 9021 3774
Tundra Business Synergy
Credit Representative Number 496186 is authorised under Australian Credit Licence Number 389328.
ABN - 63 007 814 458.
Member of MFAA.
Disclaimer: Your full financial situation would need to be reviewed prior to acceptance of any offer or product.