Hidden fees in business loans: upfront costs, valuations and exit penalties
Paul Stone on the fees that make a cheap-looking business loan expensive, and what to ask any lender about upfront costs, valuations, extensions and early payout before signing.
The questions to ask any lender
- Establishment fee: flat or a percentage, and is it payable if the loan does not settle?
- Valuation: is a sworn valuation required, and who pays for it?
- Minimum interest period: how many months are charged even if you repay early?
- Prepaid interest: is the unused portion refunded on early repayment?
- Extension fee: what does it cost to run past the stated term?
- Early repayment: is there a penalty for paying out early?
HomeSec's answers
No application fee, no valuation required, no minimum interest period, no extension fee and no early repayment penalty. Unused prepaid interest is refunded, and every cost is disclosed in writing before you sign. The full schedule is on what it costs.
The video is the short version. The written guide has the detail: hidden fees for business loans in Australia: the full list.
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
See if you qualify in sixty seconds
Three short questions, no credit check to apply and no financial statements. A Lending Manager reads it and calls you back with a real answer — not a call centre, not an algorithm.
That's the HomeSec Advantage.
Reviewed by Jason Brockmuller, Joint Chief Executive