You might be under the impression that business financing is the type of service that operates in pretty much the same way on a yearly basis. Although this used to be true a decade ago, the consistent fluctuations in average annual percentage rates and the competitive nature of the market means that modern day lenders have had to shift the way that they work to keep up with the times.
For those of you that are just about to embark upon your next loan application – you’ll be pleased to hear that 2017 is expected to offer a great range of advantages to business owners, whether you’re in need of truck financing, office equipment finance solutions, or anything in between.
What’s With the Change?
Every year the Reserve Bank of Australia calculates its financial potential, and it’s this highest authority that steadily dictates the types of prices that customers can expect to receive from lenders. Each year an annual evaluation will be performed by the RB – and it will then divide its funding between particular sectors. Although a large quantity will go to banks in general, there’s also a huge portion set aside for those offering non-mortgage loans.
This is one of the main reasons why the Australian economy is as successful as it is right now.
So, where do lending agencies stand to benefit? Well, they fall into the category of non-mortgage lenders; especially those that offer equipment and company financing services to their customers. What this means in the simplest terms is that the better Australia does, the lower that APR rates can be expected to be.
This might not always be the case however, especially for smaller lending agencies that operate outside of the influence of the Reserve Bank. In these cases most customers will be greeted by one of two scenarios, in most instances. The first will be that the lender might up their rates to cater to the market; the second might be that they prefer to remain competitive, even if that means trying to rival the lenders that are supported by the RB.
In either event what this means is that in 2017 you can expect incredibly affordable terms and conditions – the likes of which simply haven’t been seen before in Australia.
If you’re currently considering applying for a little financial support for your business in preparation for the year ahead, why not get in touch with our team right here at Tundra Finance? We’ll leap hurdles and scale walls to connect you with the fairest loans, and we’ll do it all with your expectations in mind, so why choose anyone else?
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.