FLEXIBLE REPAYMENTS ARE IN BUSINESSES BEST INTEREST
Written on the 26 June 2014
BUSINESS loans that offer flexible repayment options are in demand from small businesses.
Flexibility provides added security that suppliers and wages will still be paid when cash flow gets tight and that businesses can expand by using extra funds to tender for new jobs.
Businesses also have the ability to negotiate better terms and discounts with suppliers if they have cash available for larger upfront payments that is not tied up in loan repayments.
Being able to choose the frequency of loan repayments, as well as the ability to make extra repayments will often depend on whether the loan has a fixed or variable interest rate.
However, regardless of the interest rate chosen, businesses should negotiate to ensure their repayment options are best suited to their financial needs.
Whether a business opts for weekly, fortnightly, monthly, quarterly or even yearly repayments can depend on many things, including cash flow and stability.
Also important to business owners deciding to lend is the ability to decide between principal and interest or interest only repayments.
It is essential that a business chooses a loan with flexible repayment options to ensure they can best tailor the loan to suit their needs.
A business built on flexibility will be best tailored to deal with fluctuations in business activity and profitability.
An ANZ Small Business Specialist can assist you with every aspect of your business finances, including managing your cash flow, applying for a business loan, consolidating your banking and streamlining your accounts. If you would like to find out how you can grow your business through finance please go to www.businessloans.anz.com to find out more.
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