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Business Line of Credit

Business Line of Credit is a revolving line of credit facility that offers transactional capabilities and easy access to funds within an approved limit. Essentially, you apply for an approved limit and then you can access and draw down the funds within that limit at any time and through any channel, without having to contact your Relationship Executive.

Although the features of the Business Line of Credit facility are similar to those of an overdraft, the main differentiation is that the Business Line of Credit is designed for core or long term debt and the client's balance is expected to fluctuate near the total approved limit (as opposed to between positive and negative balance like an overdraft) and seldom to hold a credit balance.

How Can it Help You?

  • Provides complete flexibility - A loan that is flexible to cater for changing client needs and enables you to have access to funds up to an approved limit, with no need to renegotiate the loan or contact your Relationship Executive
  • Provides value for money - a long term debt facility with competitive interest
  • Provides convenience and choice - Consolidate lending facilities and transactional needs into one easy account and access funds electronically, in a branch or by writing your own cheques
  • Provides control - the ability to pay the facility off at your own pace and the ability to redraw up to the approved limit as required


Limit amount

Minimum limit amount $50,000
No set maximum limit


No set term (however this facility is repayable on demand).
Term for servicing tests:
  • Fully residentially secured up to $1 m: 30 years
  • All other security: 15 years if fully secured; shorter terms according to client quality and security cover

Basis of interest rate

The interest rate is linked to the RBA Cash Rate or linked to the Bank Bill Rate, i.e. BBSW

Actual interest rate

Three options for interest rate:
  1. For clients with residential security: The Residential Equity Rate (RER) less a margin
  2. For clients with other security positions: Better Business Loan (BBL) Variable Base Rate + or - client margin depending on your credit risk rating
  3. For sophisticated clients who want market rate pricing: Business Line of Credit Reference Rate (based on a 90 day Bank Bill Rate i.e. BBSW) + or - a client margin depending on your credit risk rating. The reset period is February, May, August and November
Note: Both RER and BBL Variable Base Rate are linked to the RBA Cash Rate. These rates will be periodically reset when the cash rate moves

Interest charging cycle

Interest is calculated daily and charged monthly in arrears

Interest payment

Interest is to be debited to the facility but can be charged to a nominated account if requested


Not required. You may pay off the facility at your own pace

Credit interest rate

No interest is payable on credit balances

Line fee

A Line fee is payable on the total approved limit on a monthly or quarterly basis in arrears, as determined by the client.
  • For Residential Security: Line fee of 0.55% pa is charged
  • Other Security positions: Line fee of 1.20% pa is to be charged

Establishment fee

Residential Security: A flat of $600
Other Security positions: Scale establisment fee applies

Loan service fee

No loan service fee

Transaction fee

8 free transactions per month, then $2 per transaction

Access options

  • ATM
  • Cheque book
  • Branch
  • Online (NetBank, CommBiz)

Transaction capababilities

Full transactional capabilities, for example, the client can transfer, withdraw or deposit funds


Facility needs to be secured to the Bank's satisfaction. Acceptable security includes real property as well as the full range of assets generally considered acceptable by the Bank, including "going concerns". Unsecured positions can be considered depending upon the credit quality of the client

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