The Commonwealth Bank of Australia (CBA) is offering a zero rate business loan to help reopen small businesses over the Christmas season.
Mike Vacy-Lyle, head of corporate banking at CBA, said small businesses were looking to take advantage of pent-up consumer demand. However, a number of them find it difficult to restock and rehire due to lack of funds.
The Business Boost Loan provides small businesses looking to catch up with quick access to cash and a three-month initial repayment vacation. Eligible merchants can borrow a fixed amount of up to $ 100,000 over a two-year loan term.
Customers must pay a $ 200 fee for every $ 5,000 they borrow, and the one-time fee is added to the total loan amount and repaid over the life of the loan.
Vacy-Lyle cited a gym owner who used the Business Boost loan to manage “a quieter vacation period while preparing for a busier new year.” With the loan, he could work on what his business needed to thrive in the following months without having to cash out until March 2022, when income should be more consistent.
“Businesses want simplicity and certainty during a very difficult time,” said Vacy-Lyle. “We have worked 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. “
The loan is available to existing CBA customers through the bank’s self-service lending platform, BizExpress Online, where they can complete the application online and receive a real-time credit decision within 24 hours.