The Commonwealth Bank of Australia (CBA) is offering a zero-interest business loan to aid in the reopening of small businesses during the Christmas season.
Mike Vacy-Lyle, executive for business banking at CBA, said small businesses are looking to capitalise on pent-up consumer demand. However, a number of them are struggling to restock and rehire due to the lack of funds.
The Business Boost Loan gives small businesses who are looking to catch up fast access to cash and an upfront three-month repayment holiday. Eligible merchants can borrow a set amount up to $100,000 over a two-year loan term.
Customers are charged a $200 fee for every $5,000 they borrow, and the one-off fee is added to the total loan amount and repaid over the duration of the loan.
Vacy-Lyle cited a gym owner who had used the Business Boost Loan to manage “a quieter holiday period while preparing for a busier new year.” With the loan, he could work on what his business needed to thrive in the following months without having to cash out until March 2022, when revenue is expected to be more consistent.
“Business want simplicity and certainty during what has been a very challenging period,” Vacy-Lyle said. “We’ve worked to deliver a unique offering that will provide just that, with no hidden costs, no variable rates, and in fact, no interest rate at all.”
The loan is available to existing CBA customers via the bank’s self-service lending platform, BizExpress Online, where they can complete the application online and receive a real-time credit decision within 24 hours.
