INTEREST ONLY BUSINESS LOANS

Our INTEREST ONLY BUSINESS LOANS

Private 1st Mortgages & 2nd Mortgages

An INTEREST ONLY business loan is the perfect fit for business owners and commercial property investors who want a fast and temporary loan.   If they are after a business loan for a longer term than a 1 – 6 month Business Bridging Loan or Caveat Loan, then an Interest Only Business Loan is a logical choice for many reasons.

The main reason is affordability.  Rather than having to pay high monthly payments with a conventional business loan, a Business loan keeps your monthly payments to a minimum.  The other reason is speed and simplicity.  With HomeSec, our Business Loans can be funded in in 24 hours, and we don’t do valuations or require piles of paperwork.

Why are Interest Only business loans more affordable ?
Answer: Because you are only paying the interest each month, rather than having to make much higher payments with a Principal & Interest loan.   By only paying the interest each month during the term of the loan, it means you have lower monthly committments.  Plus you can pay it all out in one hit when an event happens such as a refinance or the sale of an asset.

Plus our business loans as very easy to get approved.  If you have sufficient equity in real estate, you are almost certain to be approved and funded within 24 hours.

At the end of the 12 month term, you can pay the INTEREST ONLY LOAN out (often through the sale of an asset, or refinance).  OR you can extend the loan with no additional fees. You simply continue to pay the interest each month.

As it is a business loan, all interest and costs are fully tax deductible.

What is Required?

Get the Lowest Interest-Only Business Loan from HomeSec

While applying for a traditional business loan from a bank, the borrower has to provide proof of their business profit , full financial documents along with security documentation to assure the lender they will pay back the loan. However, with an interest-only loan from HomeSec, you will not need anything other than details of the property being used as security and information relating to the existing mortgage. Our experienced and helpful team will assist you in customizing the best business loan type according to your needs.

In business loans with interest-only periods, you only have to pay for the interest amount and not the principal amount. Usually, the repayments for business loans consist of 2 segments.

Principal- It is the initial amount of the loan balance that you borrow
Interest- A balanced percentage to pay, charged by the lender on top of your principal amount balance

While paying for the interest and the principal amount, you can decrease the loan balance in the repayment term. Since we calculate the interest rate on the remaining balance of the business loan, the amount will also decrease with time. However, in interest-only loans in Australia, the principal during the repayment period will not get reduced as the repayment will cover the interest amount only of the business loan amount.

How Long Do the Interest-Only Periods Extend?

With traditional bank funding, the borrower can also switch between principal and interest repayment methods at any time during this loan type. However, there may be restrictions on the interest-only periods during the loan life. These restrictions are applicable if the borrower applies for an extended or a new request for an interest-only business loan.

When the interest-only time limit expires, the repayment amount will include the initial principal amount like any other loan. The repayment amount will also increase when you start paying off your principal. Thus, you should remain prepared for this change and plan it accordingly. Homesec has options for low-interest-only business loans to be extended indefinitely.

Benefits of Interest-Only Loans

Business loans with interest-only repayment periods are perfect for small businesses without substantial capital or massive cash flow for smooth operations. Here at HomeSec, we assist you in providing business funding for any business use with our simple interest-only funding. You can have your funding almost immediately with no early repayment fees and competitive interest rates. Besides these, other advantages of low-interest-only business loans include:

• Initial Low Repayments

The primary advantage of an interest-only loan is that the monthly amount you will pay will be much lower than that of a conventional principal and interest loan.  This is because you are only paying the interest each month.

• Debt Consolidation

You can also use this funding to refinance other debts like credit cards or business loans with much higher-interest rates.

• Tax Incentives

If you borrow money for your business, you will get tax benefits from the interest repayment on your business loans. You can claim a deduction on the interest charged on the principal loan amount, and all fees associated with the loan.

• Extra Repayments

Having a loan with an interest-only repayment term does not mean you cannot pay the principal during this period.  We allow borrowers to make additional payments without extra charges. These payments get adjusted against the principal.

Options after the interest-only repayment period get over

You can opt for any of the three options once the interest-only period gets over in low-interest loans for bad credit.

• Extending the interest-only repayment period

If your interest-only repayment term is coming to an end and you want to extend it, you can discuss your options with us.  At this time, we will assess the borrower’s financial circumstances before approving a new period for an interest-only loan term.   If interest payments have always been made on time, we will always be happy to extend your loan term for as long as you require.

• Convert to interest and principal repayment.

When the interest-only period ends, you may begin to make partial lump sum payments to reduce the principal, or you can just extend the loan term.  You are under nor pressure to go either way.

• How to renew and interest-only business loan

After the interest-only repayment period is over, you can automatically roll it over into a new term, with no fees or penalties.

Reasons to apply to HomeSec for interest-only loans in Australia.

HomeSec explicitly empowers businesses to reach their goals by offering monetary finance to them. We have different types of business loans with interest-only repayment or capitalised business loans that will meet the requirements of the borrower. We are famous among the borrowers as a pioneer lender of competitive low-interest business loans in Australia because:

• The online application process only within minutes
• Funding approval within 24 hours
• Flexible repayment period
• Versatile terms and conditions
• No early repayment charges

So, if you are also interested in taking out a low-interest-only business loan, connect with one of our financial advisors and understand your best alternatives.