It depends on the asset, your business and the fees, so there’s no single fair rate. The headline rate alone doesn’t show the true cost: enter the figures from your quote below to see the repayments, every fee and the rate once fees are included.
A lender prices each loan on the application in front of it. These are the things it looks at, and each lender weighs them differently.
Business use only. For ABN holders. A calculation from the figures you entered, not a quote, an offer or advice. It doesn’t judge the quote or compare it with other lenders. The effective rate including fees is not a comparison rate.
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There’s no single answer. Whether a rate suits your loan depends on the truck, how long your business has traded, your deposit, your credit history, the documents you provide and the balloon. The rate also leaves out the fees. Enter your quote in the checker above to see what it costs in dollars and as a rate once fees are included.
An advertised rate is often a “from” rate, for the applicants and assets a lender sees as least risky, such as new equipment bought from a dealer by a long-established business. Your rate is set on your own application: the equipment’s type and age, how long your ABN has been active, your credit history, the documents you provide and your deposit. Ask the lender which of those affected your rate.
The interest rate only sets the interest. The real cost is everything you pay on top of the amount you borrow, which is the interest plus every fee. The checker shows that total in dollars, and as an effective rate including fees: the yearly rate once fees are counted. If it’s higher than the quoted rate, the gap is what the fees add.
It makes the monthly repayments lower, not the loan. At the same rate and term, you pay interest on the balloon amount for the whole term, so the total interest is higher than without a balloon, and the balloon is still owed at the end. Try the checker with and without the balloon to see the difference in dollars.
Every fee, in dollars. Common ones are a brokerage or origination fee, the lender’s establishment or documentation fee, a monthly account fee and a fee to register the lender’s security on the PPSR. Ask about early payout and late payment fees too. Ask for every fee in writing, in dollars, before you sign.
No. A comparison rate is calculated in a set way, on set loan amounts and terms. This rate is worked out from the figures on your own quote, so it shouldn’t be read as a comparison rate.
Business-use finance for ABN holders. We don’t arrange personal or consumer loans.
Capital Hill Finance Pty Ltd (ABN 21 686 296 720), Corporate Credit Representative 569305, authorised under Fintelligence Pty Ltd, Australian Credit Licence 511803.
We’re not a lender. Any credit contract is between you and the lender, and the lender decides every application. Complaints