Not in my books as it demonstrates a lack of financial budget and planning.
Anyways, I would expect ANY business loan would come at much higher interest rates than the already high, mortgage rates.
Nope my overall loan book is a fraction of the capital base fully covered by RES equity = RES lending 5.99% .. all I did was increase one loan by 10% instead of selling shares and converting to a strong NZD at the time..
I had no issue doing this or did the Bus Bank manager that secured me the extra funds at the time ..
My company trading the ASX isn't exactly like a standard business with customers and weekly earnings .. Cap gains ...Dividends where I get profits from ..
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
There seems to be a divergence in opinion here. Do banks offer a better rate (fixed or floating) for business loans?
Best you talk with your bank ...fixed rates will be lower .. much depends on ones financial position .. I've never paid more than RES rates for all my commercial /business loans but then I've got a good amount of RES equity they can use as collateral .. many bank that I've approached don't like Kiwibank / BNZ etc ... Westpac/ANZ been great to deal with over the years ..
Last edited by JBmurc; 08-05-2023 at 12:33 PM.
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
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