With restrictions lifted and trading resumed across Australia, Commonwealth Bank is offering a zero interest loan to help businesses get back on their feet as the Christmas period approaches.
The new loan offering, dubbed Business Boost Loan, will provide customers with up to $100,000 in funds. Instead of interest, they will be charged a fee of $200 for every $5,000 borrowed, which will be added to the principal and repaid over the life of the loan.
Businesses can also take advantage of a three-month initial repayment holiday, meaning they won’t have to make their first loan repayment until March 2022, when business activity has hopefully resumed.
To apply for the loan, business owners should visit CommBank’s digital lending platform, BizExpress Online. A loan decision will be made within 24 hours and successful applicants will receive funds soon after.
Mike Vacy-Lyle, CBA Group Director of Business Banking, says many businesses emerging from lockdown still face huge uncertainty and simplified loan products can help them weather bumpy revenue streams.
“The various restrictions associated with COVID-19 have meant that many small businesses have struggled to generate much revenue over the past few months, and these businesses now need to be able to restock and rehire,” he said. -he declares.
“Meanwhile, other businesses are looking to expand or capitalize on pent-up customer demand.
“Companies want simplicity and certainty during a very difficult time. We’ve worked to deliver a unique offer that will do just that, with no hidden fees, no variable rates, and in fact, no interest rates at all.
Earlier this month, ScotPac announced a similar offer. Its Bounce Back Fund allows businesses to access funding of up to $1 million, with the first three months of interest on loans being fully forgiven.
CommBank’s Business Loan Boost will be offered under the SME Recovery Loan Scheme, a government-backed program that hopes to minimize the impact of COVID-related shocks on small and medium-sized businesses.
Under this program, SMEs that have been affected by the pandemic can access low-interest loans of up to $5 million, with the government guaranteeing 80% of the loan amount. The plan is due to end on December 31, 2021.
To compare the financing solutions currently available, visit our business loan comparison page or browse the selection below.