Business term loans

A loan for whatever your business might need, whether it's business or farm equipment, new premises or a strategic investment. Your business repays borrowings over a set period in regular structured payments.

Benefits at a glance

  • Budget with certainty knowing your payments won't change during a fixed interest rate term.
  • Get flexibility to make extra payments without cost on a variable interest rate.
  • Draw down funds as a lump sum or progress payment instalments.
  • Interest-only payment options available.

Is it right for my business?

Term loans work best if you know how much your business or farm needs to fund and how long you’ll need those funds. You can structure the loan amount and term to suit your business plans and budget.

Key features

Funding for what you need big or small

Term loans can be structured (loan amount, term and payments) to your business or farm needs based on your ability to repay the loan.

A timeframe to suit your budget

There are term loan options from 6 months up to 20 years available.

Choose a fixed or variable interest rate, or a mix of both

You can choose from a fixed interest rate and know exactly what you’ll pay and when, or a variable (floating) interest rate with the flexibility to make extra payments at any time without cost. You can also choose to split your loan into multiple facilities, and enjoy the best of both types of interest rates.

Choose how you structure your business term loan

Table loan

This is the most common type of business loan. Every payment includes a combination of interest and principal. At the beginning your payments will be made up of mostly interest. As the loan reduces, each payment will be made up of less interest and more principal than the previous one.

Reducing loan

Every payment includes a combination of interest and principal and lets you pay the same amount off the principal with every payment. Because you pay more interest off at the beginning of the term, your payment amount steadily reduces as you pay off your loan.

Interest-only payments

A short to medium term option for those wanting to minimise their payment costs. Each of your payments will only cover the interest cost. Interest is calculated on the outstanding principal balance. You may be able to make interest-only payments for a period of up to 5 years within a longer loan term. For example, you have a 10 year loan term but pay interest-only for two of those years. Please discuss the option of interest-only payments with us as these are subject to meeting specific lending criteria and terms.

Next steps

Enquire online

Tell us about your business and how we can help, and one of our team will get back to you.

Enquire now

Talk to an expert

Our business and rural experts can help you choose the right products and services for your business.

Find an expert

Visit a branch

Visit us at one of our many branches.

Find a branch

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ASB’s lending criteria and terms apply. An Establishment fee may apply.
Specific terms and conditions apply for the products and services referred to on this page.
Business and Rural interest rates and fees.

ASBBusiness term loans