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FAQs
Small Business FAQs
- Who can take advantage of business loans at home loan rates?
- What lending options do you offer for the self-employed and small business owners?
- What are the features of a Portfolio Loan?
- What are the main differences and similarities between a Standard Variable Loan, Fixed Rate Loan, Portfolio Loan and Low Doc Loan?
- Do I have to provide property as security on a Business Maximiser?
- Can I have a fixed interest rate on a Business Maximiser?
- Can I use a Business Maximiser as my everyday business account?
- Can the Commercial Overdraft product be used for personal use?
- Is the Commercial Overdraft a fixed or variable interest rate facility?
- Should I use a Commercial Overdraft to fund capital expenditures such as company cars?
- Do I have to provide property as security for a Commercial Line of Credit?
- Can I have a fixed interest rate on a Commercial Line of Credit?
- Can I make principal repayments to reduce the balance on a Commercial Line of Credit?
- If interest rates move, can I fix the rate on a Business/Commercial Loan Variable?
- Should I use a Business/Commerical Loan Variable to fund working capital shortfalls?
- What happens to my Business Loan Variable if I replace my residential property with commercial property or other security(s)?
- Can a Business/Commercial Loan Variable be used for personal use?
- Can I change my repayment schedule on a Business/Commercial Loan Fixed?
- If official interest rates reduce, can I re-fix a Business/Commercial Loan Fixed facility?
- Can I make a lump sum reduction to my Business/Commercial Loan facility?
- What type of Business Insurance cover does St.George offer through CGU?
- How can Cash Flow Finance help my business?
- What Foreign Exchange Services do you offer?
- What is the difference between a Bank Guarantee and a Performance Bond?
- Does the Bank Guarantee have to have an expiry date?
- What happens if the beneficiary calls on the Bank Guarantee but I do not agree?
- My landlord would like a rental bond. Can I use a Performance Bond for this purpose?
Who can take advantage of business loans at home loan rates?
All customers borrowing for business purposes using a residential property as security are able to obtain any St.George loan at home loan rates (subject to approval).
What lending options do you offer for the self-employed and small business owners?
Our range of residentially-secured loans can suit the needs of a personal or business borrower. These include Overdrafts, Fixed and Variable rate loans, Line of Credit, Low-Doc loans and No Deposit loans.
What are the features of a Portfolio Loan?
The Portfolio Loan enables small business owners to combine a business loan, personal finances and investment needs into one convenient, flexible line of credit. Features include:
- One overall approved credit limit
- Create up to ten sub-accounts. Distribute credit limit between sub-accounts. No repayments required as long as loan is within the approved limit.
- Different ownership structures. The non-primary sub-accounts can have different ownership structures. Trading name can be included in sub-account to allow cheque deposits into the account and to allow the account to be used as overdraft.
- Interest rates. Choose fixed or variable rates on the non primary sub-accounts.
What are the main differences and similarities between a Standard Variable Loan, Fixed Rate Loan, Portfolio Loan and Low Doc Loan?
| Standard Variable Rate Loan | Fixed Rate Loan | Portfolio Loan | Low Doc Loan | |
| Principle and Interest | N/A1 | |||
| Interest-only | ||||
| Additional payments | Unlimited | Limited2 | Unlimited | Unlimited |
| Redraw Facility | N/A | |||
| Partial Interest Offset | N/A | |||
| 100% Interest Offset | N/A | 3 | ||
| Internet and Phone Banking access | ||||
| ATM access | ||||
| EFTPOS access | ||||
| Link to Credit Card | ||||
| Rate Lock available | N/A | 4 |
- Principle and interest payments may be made on Portfolio Loan sub accounts, however the minimum payment required will always be interest plus charges accrued during the month
- For fixed rate loans, the amount of any principal reduction is dependent on the loan condition at the time the fixed rate was entered
- On variable portion only
- For fixed rate loans only
Do I have to provide property as security on a Business Maximiser?
Yes, as a minimum to received our competitive interest rate, this facility must be fully secured by the extended value of freehold residential property.
Can I have a fixed interest rate on a Business Maximiser?
Due to the fluctuating nature of the facility, it is only available with a variable interest rate. If you wish to refinance a portion of this debt to a fixed rate, we can offer other products suitable to that purpose.
Can I use a Business Maximiser as my everyday business account?
Yes, all day to day banking for your business can be done through this one account.
Can the Commercial Overdraft product be used for personal use?
No, the Commercial Overdraft product is for business and investment lending purposes only. A Portfolio Loan should be considered for this purpose.
Is the Commercial Overdraft a fixed or variable interest rate facility?
Due to the fluctuating nature of this facility, the interest rate is aligned to a variable rate.
Should I use a Commercial Overdraft to fund capital expenditures such as company cars?
No, this product is designed for working capital and other fluctuating finance requirements and is not suitable for asset funding purposes. We have a range of Equipment Finance options such as a finance lease and/or commercial hire purchase and business and commercial term loan facilities that are more appropriate for longer-term asset funding.
Do I have to provide property as security for a Commercial Line of Credit?
Yes, as a minimum, this facility must be fully secured by the extended value of freehold property(s). This may include a mix of commercial, industrial, rural or residential.
Can I have a fixed interest rate on a Commercial Line of Credit?
Due to the fluctuating nature of the facility, it is only available with a variable interest rate. If you wish to refinance a portion of this debt to a fixed rate, we can offer other products suitable to that purpose.
Can I make principal repayments to reduce the balance on a Commercial Line of Credit?
Regular repayments are not a requirement of this facility as long as the balance remains within the approved limit, however you may organise regular payments to the account if you wish. If you require a facility where the balance reduces regularly by a set amount over an agreed term then a Commercial Loan Fixed or Commercial Loan Variable would be more appropriate.
If interest rates move, can I fix the rate on a Business/Commercial Loan Variable?
If you wish to fix your facility, you will need to convert your Business Loan Variable to a Business Loan Fixed facility. A renegotiation fee will apply and the appropriate documentation must be executed before the fixed interest rate applies.
Should I use a Business/Commerical Loan Variable to fund working capital shortfalls?
No, this product is designed to assist with capital expenditure for investment and/or business purposes where longer-term finance is required e.g. property purchase. An Overdraft would be more appropriate for cash flow funding.
What happens to my Business Loan Variable if I replace my residential property with commercial property or other security(s)?
The Business Loan Variable is aligned to our residential interest rate. Where commercial property or other security(s) is offered, the Commercial Loan Variable must be used.
Can a Business/Commercial Loan Variable be used for personal use?
No, this product is for business and investment lending purposes only. We can offer a range of home loans suitable for personal use, where residential security is offered.
Can I change my repayment schedule on a Business/Commercial Loan Fixed?
You can change to a Principal & Interest amortising facility or to an Interest-in-Advance facility at the end of a fixed interest rate term. If the repayment type is changed during the fixed interest rate term, break costs may be incurred.
Can I progressively draw down on a Business/Commercial Loan Fixed?
A Business/Commercial Loan Variable would better suit this purpose. You cannot add to the principal balance of a Business. Commercial Loan Fixed during the fixed interest rate period. If more than one drawing is required whilst the rate is fixed, a separate loan account must be set up and the rate fixed on the day the funds are drawn.
If official interest rates reduce, can I re-fix a Business/Commercial Loan Fixed facility?
If you wish to re-fix the interest rate during an existing fixed interest rate period, a fee will apply and break costs may apply.
Can I make a lump sum reduction to my Business/Commercial Loan facility?
Lump sum principal payments can be made without penalty on expiration of the fixed interest rate period. Principal repayments made during a fixed interest term may be subject to break costs and may incur a fee.
What type of Business Insurance cover does St.George offer through CGU?
A range of covers including:
- Property
- General property
- Commercial motors
- Business interruption
- Machinery breakdown
- Theft and money
- Employee dishonesty
- Taxation investigation
How can Cash Flow Finance help my business?
The St.George Cash Flow Finance solution allows you to leverage the power of their outstanding debtors. It allows you to borrow against the assets of your business incorporating Debtors, Inventory (stock), and Plant & Equipment.
What Foreign Exchange Services do you offer?
We offer a range of foreign exchange services including:
- Spot and forward exchange transactions
- Foreign currency deposit accounts
- Foreign currency options
- Comprehensive reporting on developments and trends in financial markets and the economy
- The ability to securely effect foreign exchange transactions online with “Global Dealer”
What is the difference between a Bank Guarantee and a Performance Bond?
A Bank Guarantee is an on demand guarantee made by St George on behalf of the customer to a third party for the purpose of providing a bond or a ‘guarantee of payment’ for a financial obligation. A Performance Bond is a guarantee made by St George` to make payment of a specified amount to a third party for the purpose of guaranteeing a non-monetary obligation eg: the completion of a contract.
Who can take advantage of business loans at home loan rates?
All customers borrowing for business purposes using a residential property as security are able to obtain any St.George loan at home loan rates (subject to approval).
Does the Bank Guarantee have to have an expiry date?
A Bank Guarantee should always be issued with an expiry date as this is in the best interest of both the bank and the customer. Without an expiry date, a Bank Guarantee cannot be cancelled until either the original is returned or the amount guaranteed is paid to the beneficiary. Bank Guarantees may only be issued without an expiry date in instances when the beneficiary is unable to accept a set expiry date. All Bank Guarantees are subject to annual review.
What happens if the beneficiary calls on the Bank Guarantee but I do not agree?
The undertaking provided is for the bank to be unconditionally answerable for the payment of the specified amount and so the beneficiary's claim cannot be refused. You would have to pursue the beneficiary to recover the funds in the event of a dispute.
My landlord would like a rental bond. Can I use a Performance Bond for this purpose?
No. Your landlord would require a Bank Guarantee. A Performance Bond is only suitable to guarantee a non-monetary obligation.
