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Among the readers of australianwomenonline.com there are a lot of business women. That’s why we decided to analyse bank services for business. Today we will discuss how to choose the best bank for overdraft lending. We used data of the service http://bankchart.com.au/ to investigate the banking business lending market. It is a portal that helps people to choose the banking products that best fit their individual needs.
A business overdraft is a line of credit that becomes available when you make any withdrawal for an amount greater than the balance in your business debit account. It can be secured or unsecured. According to analytical research Bankchart.com.au 12 Australian banks offer overdraft for business. The maximum loan period is 30 years, the minimum – 1 month.
Let’s consider a rating of 10 banks that offer better credit conditions of overdraft (term – 1 year, amount – 10000$)
| No. | Name | Comparison Rate | More Info. | 1 |
Bank Australia Commercial Overdraft |
5.53% |
Interest rate: 5.09% A type of the interest rate: fixed Security: unsecured A loan administration charge: $24 Periodicity of the charge: annual An early exit fee: $0 |
2 |
Westpac Bank Business Overdraft |
5.82% |
Interest rate: 5.82% A type of the interest rate: variable Security: unsecured A loan administration charge: 0 An early exit fee: $0 |
3 |
Bank of Western Australia AgriOne Package |
6.65% |
Interest rate: 6.65% A type of the interest rate: variable Security: secured A loan administration charge: $0 An early exit fee: $0 |
4 |
Bank of Sydney Secured Loan |
7.33% |
Interest rate: 6.60% A type of the interest rate: variable Security: secured An approval fee: 0.4% An early exit fee: $0 |
5 |
Bank SA Commercial Overdraft |
8.24% |
Interest rate: 8.24% A type of the interest rate: variable Security: unsecured An early exit fee: $0 |
6 |
Bank of Melbourne Commercial Overdraft |
8.30% |
Interest rate: 8.30% A type of the interest rate: variable Security: unsecured An early exit fee: $0 |
7 |
St George Bank Commercial Overdraft |
8.80% |
Interest rate: 8.80% A type of the interest rate: variable Security: unsecured An early exit fee: $0 |
8 |
Bank of Queensland Business Overdraft |
9.11% |
Interest rate: 7.74% A type of the interest rate: variable Security: unsecured An approval fee: 0.75% |
9 |
Macquarie Bank Working Capital Overdraft |
9.65% |
Interest rate: 9.65% A type of the interest rate: variable Security: unsecured An early exit fee: $0 |
10 |
ANZ Business Overdraft |
27.37% |
Interest rate: 9.16% A type of the interest rate: variable Security: unsecured A loan administration charge: $250 Periodicity of the charge: every 3 months An early exit fee: $0 |
Thus, the best overdraft for business ladies offers Bank Australia. You can get an unsecured overdraft under 5,53 %. The maximum interest rate on overdraft is offered by Australia and New Zealand – 27,37%. As you can see, the difference between the minimum and maximum lending rates is significant. This once again confirms the need to compare banking products. It allows reducing credit spending.
Choosing a bank for lending, you need to pay attention not only to the interest rate, but to additional fees – a loan administration charge, an early exit fee, an approval fee.