Boat Loans Australia :: Articles

Business Loans: Managing interest rate risks

Business Loans: Managing interest rate risks

Business Loans: Managing interest rate risks
I want the protection in the current low interest rate environment but I don't want to be locked in for too long a period - a commonly heard requirement from business borrowers.
Businesses can often find themselves adversely affected by interest rate changes.

Fixed or variable?

Choosing either a fixed or variable interest rate may not provide the perfect solution for your interest rate needs.
Whilst fixed interest rate borrowers cannot benefit from any interest rate falls, variable interest rate borrowers may find that they are exposed to the risk of rising interest rates.
Successful businesses are continually required to meet increasing demands requiring greater sophistication.

Strategies

Business Plant & Equipment Finance
Image for Business Plant & Equipment FinanceLooking for the best way to finance your business plant & equipment? Well, you need look no further! Simply submit our 2-minute business loan enquiry form ... and we'll help get you qualified for the best rate Plant & Equipment loan available from our national panel of independent business finance brokers. We also have access to the best rates & options for Business Cashflow finance. So, why not give us a go ... no charge, no obligation!
Many institutions are able to respond to sensitivities to interest rate movements with customised interest rate risk management strategies to suit your business.
To find the strategy that best fits your requirements you should consider whether, overall, you need the flexibility of a variable interest rate, or the certainty of a fixed interest rate.
There are many innovative interest rate, risk management products in the Australian market designed for the current interest rate environment offering businesses:
  • flexibility.
  • the ability to minimise interest rate risk.
  • interest rate protection with the ability to benefit from lower interest rates.
Larger institutions offer Business Bankers and Risk Management Specialists as part of their service to help identify financial products which may help reduce interest rate risk and uncertainties facing business borrowers.
For example Flexible Maturity Fixed Rate Bills provide a known fixed rate for a total term, say, five years.
The first three year period is fixed plus an optional two year extension period.

Capped Rate Bill

Another example is a variation of the standard Capped Rate Bill, where the customer pays a premium either up-front or in arrears and gives the borrower a known maximum cost of borrowing.
For example if the borrower has a set view on interest rates, or would like to take out some "disaster insurance", the Pay-If-Used Capped Rate Bill provides maximum known interest rate protection from interest rate rises for up to five years – and the business pays for it only if the cap rate is reached.

Think ahead

Try to identify peaks and troughs in cashflows to forecast business needs.
The institution may be able to provide specialised borrowing alternatives in periods where seasonal requirements fluctuate.
A new borrowing strategy may help you to conserve much-needed cash during the post-Christmas period and use credit funds (and not over-draft) to make loan repayments during the month.

Published: Sunday, 1st Aug 2021
Author: Paige Estritori


Boat Loans Articles

How to Prepare Your Boat Loan Application for Quick Approval How to Prepare Your Boat Loan Application for Quick Approval
In today's competitive financial landscape, securing a boat loan quickly can make a world of difference. By preparing your application in advance, you expedite the approval process and increase your chances of success. - read more
How to Improve Creditworthiness and Increase Chances of Boat Financing Approval How to Improve Creditworthiness and Increase Chances of Boat Financing Approval
Are you dreaming of purchasing your dream boat but worried about getting approved for financing? Ensuring you have a good creditworthiness is essential when it comes to obtaining boat financing. In this blog post, we will explore the importance of creditworthiness in boat financing and provide valuable tips on how you can improve your creditworthiness to increase your chances of getting approved for boat financing. - read more
Exploring Australia’s Stunning Coastline: The Joys of Boats and Jet Skis During Holidays Exploring Australia’s Stunning Coastline: The Joys of Boats and Jet Skis During Holidays
Australia is home to some of the most breathtaking coastlines in the world. Stretching over 25,000 kilometers, Australia's diverse coastal landscape offers something for everyone, from serene beaches to rugged cliffs and vibrant coral reefs. This vast and beautiful coastline is a treasure waiting to be explored, making it a perfect destination for holidaymakers looking to experience the magic of the sea. - read more
Understanding Boat Ownership: Budgeting Beyond the Purchase Price Understanding Boat Ownership: Budgeting Beyond the Purchase Price
Welcome to the world of boat ownership! If you’re dreaming about weekends on the water, wind in your hair, you’re not alone. However, new boat owners often find themselves surprised by the real costs of owning a boat. It's crucial to understand that budgeting goes beyond just the initial purchase price. Planning ahead can save you from unexpected financial stress. - read more
Setting Sail: Top 10 Boating Spots in Australia Setting Sail: Top 10 Boating Spots in Australia
Australia is a boater’s dream, offering an extraordinary array of aquatic landscapes that beckon adventurers to set sail and explore. From the gentle lap of waves in sheltered coves to the expanse of the open ocean, the joy of boating down under is unmatched. Whether you're a seasoned sailor or new to the world of nautical navigation, Australia’s waters promise spectacular views and unforgettable experiences. - read more
How to Get the Most Value for Your Money When Buying a Fishing Boat How to Get the Most Value for Your Money When Buying a Fishing Boat
Investing in a fishing boat can be an exciting and rewarding experience, but it's important to make sure you're getting the most value for your money. There are several key factors to consider when buying a fishing boat, including your specific needs, budget, and financing options. It's also important to research boat brands and negotiate the sale to ensure you're getting a fair price. - read more
How to Get the Most Value for Your Money When Buying a Fishing Boat How to Get the Most Value for Your Money When Buying a Fishing Boat
Investing in a fishing boat can be an exciting and rewarding experience, but it's important to make sure you're getting the most value for your money. There are several key factors to consider when buying a fishing boat, including your specific needs, budget, and financing options. It's also important to research boat brands and negotiate the sale to ensure you're getting a fair price. - read more
Anchor Your Finances: Tips for Responsible Boat Financing Anchor Your Finances: Tips for Responsible Boat Financing
Welcome to the world of boat ownership! Whether you're dreaming of sailing the serene waters of Port Phillip Bay or exploring the vast Australian coastline, owning a boat is a thrilling adventure. However, like any significant investment, it's crucial to understand the financial responsibilities involved. - read more
5 Steps to Ensure Fast Boat Loan Approval 5 Steps to Ensure Fast Boat Loan Approval
Welcome to our quick guide on securing fast boat loan approval. Whether you're a seasoned boat enthusiast or a first-time buyer looking to explore the waters, this article is designed for you. - read more
The Boater’s Financial Pre-Loan Checklist: Ensuring Smooth Sailing The Boater’s Financial Pre-Loan Checklist: Ensuring Smooth Sailing
Are you dreaming of setting sail on your very own boat? While the freedom and adventure of boating are incredibly enticing, it's essential to ensure you're financially prepared before taking out a boat loan. - read more
Mistakes to Avoid When Applying for Boat Financing in Australia Mistakes to Avoid When Applying for Boat Financing in Australia
When it comes to purchasing a boat, financing plays a vital role for many individuals in Australia. However, applying for boat financing can be a complex process, and making mistakes along the way can lead to significant financial consequences and missed opportunities. - read more
How to Navigate Refinancing Your Boat Loan with Ease in Australia How to Navigate Refinancing Your Boat Loan with Ease in Australia
Refinancing a boat loan can be a strategic financial move, enabling boat owners to reap the benefits of lower interest rates, reduced monthly payments, or shorter loan terms. The concept of refinancing involves replacing your existing loan with a new one, often with more favorable conditions that better suit your current financial situation. - read more

Finance News

Auditor Deregistered After Brite Advisers Collapse Auditor Deregistered After Brite Advisers Collapse
30 Jun 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has deregistered auditor David Makowa, previously of DM Advisory Services, due to his role in the downfall of financial advice firm Brite Advisers. This decision follows Makowa's acceptance of a court-enforceable undertaking in which he agreed to surrender his auditor registration permanently, pledging never to re-apply. - read more
US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns
23 Jun 2025: Paige Estritori

The escalating likelihood of the United States engaging militarily in the Israel-Iran conflict has raised alarm among investors, potentially leading to significant market volatility. This concern was highlighted by the global financial advisory firm, deVere Group, as tensions heighten in the Middle East. - read more
Global Markets Brace for Oil Price Surge Following US Strike on Iran Global Markets Brace for Oil Price Surge Following US Strike on Iran
23 Jun 2025: Paige Estritori

The recent US military attack on Iranian nuclear facilities has raised expectations of a significant oil price spike as global markets prepare to resume trading. Announced by former President Donald Trump, the attack marks an increased US involvement in the Middle East, which analysts believe could lead to heightened volatility across financial markets. - read more
Trump Mulls Change of Heart on Firing Fed Chair Powell Trump Mulls Change of Heart on Firing Fed Chair Powell
21 Jun 2025: Paige Estritori

US President Donald Trump is once again contemplating the dismissal of Federal Reserve Chair Jerome Powell, whom he has criticized for not lowering interest rates. Trump expressed his dissatisfaction with Powell's decisions in a Truth Social post, suggesting he might change his mind about firing him. Despite acknowledging that his strong criticisms make Powell's task challenging, Trump remains focused on his agenda for reduced rates, especially with Powell's term set to end in May 2026. - read more
APRA Clarifies HELP Debt Considerations in Home Loan Assessments APRA Clarifies HELP Debt Considerations in Home Loan Assessments
20 Jun 2025: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has released pivotal updates to the Prudential Practice Guide APG 223 and Reporting Standard ARS 223.0, focusing on how Authorised Deposit-taking Institutions (ADIs) should integrate Higher Education Loan Program (HELP) debt into home loan evaluations. The changes are aimed at enhancing regulatory clarity and acknowledging the individual circumstances of borrowers, including the nuances of their HELP debts, without compromising prudent lending practices. - read more
Economic Unrest Spurs Increased Reliance on Financial Advisers Economic Unrest Spurs Increased Reliance on Financial Advisers
20 Jun 2025: Paige Estritori

In the face of ongoing economic turmoil encompassing inflation, market volatility, and other financial stresses, a global survey from Natixis Investment Managers, conducted by CoreData Research, has highlighted a growing trend: investors are increasingly relying on their financial advisers. With 91 per cent of surveyed investors expressing trust in their financial advisers for investment decisions, this highlights an unmistakable shift amidst financial uncertainty. - read more

Start Here

START HERE.

Loan Amount:
Postcode:

Quotes are offered free & without obligation. We respect your privacy.

Knowledgebase
Escrow:
An arrangement in which a third party temporarily holds money or property until a particular condition has been met.


Quick Links: | Boat Loan Rates | Boat Loan Brokers | Boat Loan Calculators | Boat Loan Quote