Are Small Business Loans Fixed or Variable?
A fixed rate business loan is generally the most straight-forward form of finance, offering lump sum amounts that can be used to fund equipment purchases, business renovations, ongoing cash flow support and investing in inventory, among many more uses. Business loans can be helpful cash injections, offering new possibilities and covering cash flow issues quickly to allow for uninterrupted operations. Suppose you’re considering a small business loan. In that case, it’s important to know the answers to questions like ‘are small business loans fixed or variable?’ and all of the other important queries you have about finance.
The team at Prospa really gets to know you and your business, in order to provide a personalised solution for small businesses in Australia You can contact us to discuss anything related to our range of small business finance options, and we can help you understand what your options are and how to proceed.
Choose a lender that understands how small businesses operate and choose Prospa Loans for fast, easy and flexible access to fixed rate small business loans. We will work with you to help you determine the best kind of financing and repayments that work with your cash flow and your overheads.
Comparing your lending options – fixed vs. variable?
While comparing lenders, it’s worth comparing loan options too. Fixed rate finance can be easy to budget around. You know what your repayments are every time they are deducted and how many repayments you have remaining before you have totally repaid your credit. Variable rate finance can be different. The rate can vary throughout the term, which means repayments will also vary. Flexible revolving credit options (such as a line of credit) means you could have instant access to cash when you need it to fix business challenges.
How can Prospa Loans help your business?
A 2019 survey of our performance among our small business clients reveals that 82% of business clients report the funding they received from us has directly contributed to an increase in profits. Of those clients, 62% said they would come back again to us if they needed new funding for their business in the future. [The Economic Impact of Prospa Lending to Small Business, RFI Group, January 2019.]
Our business finance team are dedicated loan specialists who can help you understand and compare small business loans, what types are available to apply for and what’s involved. You can call us directly on 1300 882 867 during business hours or send us an email.
FAQs
Frequently asked questions
A fixed rate finance option is borrowed money that is repaid at a fixed rate of interest. Options like this include the Prospa Loans small business loan, which is available for loan terms of between 3 and 36 months. Throughout the term of your loan, you will repay a fixed repayment amount regularly for a fixed number of repayments until the loan is repaid in full. Variable rate finance means that the interest rate can vary during the term of the loan depending on economic conditions.
When you choose a Prospa Loan, our team works closely with our business clients to ensure that we help you identify the best repayment schedule that works for you. Prospa funding can help you to support your business’s stability and ongoing growth and ensure that repayments don’t put a significant strain on your cash flow.
If you’re looking for ongoing access to funds, then a line of credit option might work better for you. A line of credit offers your business ongoing access to credit funds and can be ideal for covering gaps in your cash flow, particularly during busy periods between invoice payments. You only pay interest on the funds you use, and, just like our small business loans, funding is possible within 24 hours of a successful application. For more information, please contact our lending specialists or quickly compare lending options online now.
Prospa Loans offers fixed rate small business loans of between $5,000 and $500,000 and a flexible line of credit (variable rate option) for facility limits of between $2,000 and $150,000.
Use our small business loan calculator to help you get an idea of how much the repayments could be on your nominated loan amount. Our online calculator will also break down the total interest charged and show you how you could reduce your interest payments by paying out your loan balance ahead of schedule. Our small business loans come with fixed terms and flexible repayment options, while our line of credit product works a little like a conventional credit card where you use the funds when you need them and repay what you have used, only paying interest on the funds you use. Find out more on our website or apply online today.
Talk to one of our friendly lending specialists about exactly what we might be able to offer your small business and how we could help you make your repayment schedule work for your business. You can call us directly on 1300 882 867 during business hours, send us an email or even live web chat with us via our website.
The benefits of a small business loan depend on what your business needs financial assistance with. A quick and easy online application with Prospa Loans could help your business with funds to overcome a cash flow slump; help bring in a fresh stock and support the launch of new products and business locations as well as help you, as the business owner, to invest in the latest and most up to date commercial equipment, software and business management systems. Get fast and easy application on a business loan to help you diversify your business and income streams so that your business is more secure and better able to manage fluctuating market conditions. The possibilities and the benefits of a small business loan can be endless.
Other questions?
