For SME Working Capital Loans, current market pricing is generally around 3–4%+ simple interest per annum.
This is an indicative range. The actual rate offered will depend on your company’s financial position, credit profile, industry, company vintage, financing requirements and the participating bank’s assessment.
Our role is to assess your case, identify suitable financing routes and push for the most competitive rate and overall financing terms available for your profile.
Why isn’t there a fixed interest rate?
There is no single interest rate that applies to every SME.
Banks assess each business individually. Two companies applying for a similar loan amount may receive different pricing because their financial performance, existing liabilities, credit profiles, industries and business history may be different.
The rate is ultimately determined by the participating bank after its credit assessment. This is why we can provide an indicative range before an application, but the final rate can only be confirmed once the bank has assessed the case.
What determines your interest rate?
Several factors can affect the pricing offered by a bank, including:
- Financial performance — Revenue, profitability, margins and overall financial strength
- Existing liabilities — Your current loans and other financial commitments
- Credit profile — The credit standing of the company and the directors or shareholders providing a Personal Guarantee
- Industry — Different banks have different lending appetites and restrictions across industries
- Company vintage — The length of time the business has been operating
- Financing facility — Different types of financing carry different pricing
- Loan tenure — The requested repayment period can affect the terms offered
- Bank’s credit assessment — Each participating bank applies its own credit criteria when assessing the application
This is why simply looking for the lowest advertised rate does not necessarily mean you will receive that rate for your business.
We push for the most competitive terms
While the bank makes the final credit and pricing decision, we work on your side throughout the financing process.
We first assess your business and financial position before determining which financing routes may be suitable. Where appropriate, we can assess multiple participating banks rather than relying on a single lender.
Our objective is to help you secure the best possible combination of financing quantum, interest rate and tenure that your profile can support.
A lower rate is useful, but securing sufficient financing on suitable terms can be just as important. For example, a business may require a larger facility to support expansion, take on more projects or maintain greater financial flexibility. The right financing structure should take the actual business requirement into account.
What should you look at besides interest rate?
Interest rate is important, but it should not be the only factor when comparing financing options.
You should also consider:
- Financing quantum — How much funding can realistically be raised
- Tenure — How long you have to repay the facility
- Monthly repayment — Whether the repayment structure is suitable for the business
- Collateral requirements — Whether assets need to be pledged
- Personal Guarantee — Whether directors or shareholders are required to provide a guarantee
- Early repayment terms — Whether penalties or additional charges apply
- Processing or other fees — The total cost of obtaining the facility
- Overall suitability — Whether the facility actually fits the business’s financing requirement
The cheapest interest rate is not always the best financing solution if the quantum is insufficient or the terms do not suit the business.
What can we tell you before applying?
Before an application is submitted, we can assess your company’s financial position and provide an indication of:
- The financing amount your profile may be able to support
- Which financing routes may be suitable
- Which participating banks may be worth considering
- The indicative interest rate range
- Potential issues that may affect approval or pricing
- How the financing can be structured based on your requirements
The purpose of the assessment is to understand the case first rather than simply submit an application and hope for the best.
Looking for SME financing?
If you are considering an SME Working Capital Loan or other business financing, speak to us before deciding which route to take.
We can assess your company’s financial position, understand how much funding you require and determine which financing options may be suitable for your business.
Our goal is not simply to find a loan. It is to help you secure suitable financing at the most competitive terms available for your profile.
