Business loan cost vs speed: don't let profits slip through your hands
Paul Stone on why choosing a business loan on headline rate alone can cost more than it saves when the money arrives too late, using a business flight as the comparison.
The wrong comparison
Comparing two loans on cost alone assumes both arrive in time. When one takes weeks and the opportunity is gone in days, the cheaper loan is the one that earns nothing. Paul makes the point with a business flight as the comparison.
The right sum
Set what the money costs against what it lets you do, and against what waiting would cost. If the opportunity does not clear the cost of the money, the right answer is not to borrow. If it clears it many times over, arguing about the rate while the deal walks out the door is the dearest choice on the table.
To put your own figures through it, use the cost of waiting calculator.
The video is the short version. The written guide has the detail: funding a business expansion.
To talk it through about your own property, ring a Lending Manager on 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.
More videos
- Private Second Mortgage vs Private First Mortgage: Which Is Faster for Business Loans?
- Second Mortgage vs Refinancing: Keep Your Bank Rate and Access Equity Fast
- Can I Get a Loan to Pay Off Tax Debt? Paul Stone Explains the Exit Strategy
- How Long Does a Business Loan Take? The HomeSec 24-Hour Clock Explained
- Every HomeSec video on this site
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Reviewed by Jason Brockmuller, Joint Chief Executive