COMMERCIAL LOANS

Overdraft

Banks allow selected customers to write in excess of the balance in their trading account, ie. to overdraw. Overdrafts are arranged “up to limits” which depend on your credit standing, ability to repay and security offered. The arrangements allow flexibility in the amount spent and equally, allow flexibility in repayments. Interest on overdrafts if charged on the fluctuating daily balance.

Line of Credit

The Line of Credit is used for purposed such as investment, purchase of any major income-producing asset such as a commercial property or a business. It is a flexible loan from a bank which allows the customers access to funds over a given period, but does not entail regular fixed payments.

Term Loans

Medium to long term lending facility commonly used for a specific purpose such as purchase of any major income-producing asset such as a commercial property, a business or any other asset of a capital nature. Interest only payments may be acceptable depending on the lender. Principal interest repayments are generally required which may be made monthly, quarterly, six monthly or annually.

A term of up to 15 years may be available.