Take Advantage of the Interest Rate Cut – A potential business owner perspective

interest rate cutOur top 3 ways you can take advantage of record low interest rates.  Our unique perspective for those looking to start or purchase a business and how they can take advantage of the interest rate cut.

1.  Pay down non-deductible debt
Whilst the idea of reducing rates is to encourage consumers to spend more, I’d suggest you think about putting the savings back into your non-deducible debt such as your home loan which will then help put you in a better position when rates rise.  And giving you more options and greater borrowing power if you wish to use the equity to purchase a business or investment property.

2.  Have Equity in you Home?  Does your Home Loan or Business Loan Rate start with a 4? Then re-finance and maybe fix your rates.
If you find that the lender has not passed on the rate cut or your variable rate does not start with a 4, time to have a conversation with me to get you a better rate and save you $$$.  Also we can discuss whether or not fixing all or part of your loan will benefit you.  See Fixed vs Variable Rates.

If you have equity in your property and are happy to use it as security to save money on your Business Loan, their are lenders that do offer home loan rates to consolidate and re-finance business debt.  The savings can be put back into growing your business or reducing non-deductible debt.

3.  Thought about getting into business?  DO IT!  Either buy an existing business (preferably one of BF Brokers Business for Sale) or start your own.  It’s brewing to become a perfect storm for people looking to get into business.

  • Lenders are becoming increasing generous with their business lending – ANZ Lending Pledge – making it easier to borrow to purchase or start up
  • The Reserve Bank is on your side!  Low interest rates to stimulate the economy, encouraging consumers to buy in your new business!
  • Currently a strong buyers market, so business owners are still very realistic with their sale price.

As always you should consult your financial adviser before making any key decisions to determine if they are right for you.