The ABC has announced that it will offer eligible small businesses an interest-free business loan with a three-month repayment holiday.
The two-year âBusiness Boostâ unsecured loan is available up to $ 100,000 to eligible existing CBA customers through the bank’s self-service digital lending platform, BizExpress Online.
No interest is payable during the term of the loan. Instead, businesses will be charged a fee of $ 200 for every $ 5,000 they borrow, or an interest rate of 4%.
Mike Vacy-Lyle, director of CBA Group Business Banking, said the Business Boost loan has no hidden costs for customers.
“[Businesses] want simplicity and certainty during what has been a very difficult time. We have made every effort to come up with a unique offering that will provide just that, with no hidden fees, no variable rates and, in fact, no interest rates at all, âsaid Mr. Vacy-Lyle.
âWe’re giving businesses quick access to cash to help them speed up their reopening plans.
âThe various restrictions associated with COVID-19 have meant that many small businesses have struggled to generate a lot of revenue over the past few months, and these businesses must now be able to restock and rehire.
âAn example of how this meets the needs of clients is the gym owner who accessed our zero interest loan to help them manage a quieter vacation period while preparing for a more New Year. loaded.
“They told us that they were previously hesitant to take out a variable interest rate loan, but felt reassured with the Business Boost loan because they know exactly what they have to pay over the life of the loan and don’t don’t need to make their first repayment until March 2022, when business will be more consistent.
To access the loan, clients must meet the eligibility criteria of the government SME stimulus program: small and medium-sized enterprises with a turnover of up to $ 250 million, the self-employed and non-profit organizations. and having 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 opening of the account.
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