Business Options Loan | Business loans - NAB
What is a NAB Business Options Loan?
Benefits of a business options loan
Flexible loans and repayments
Choose between principal and interest, interest only, or a combination of the two for your repayments. Give your business flexibility with both variable and fixed interest rate options and the choice of monthly, quarterly, half-yearly or annual repayments.
Extra repayments and ability to request redraw
If you choose a variable interest rate loan, you can make extra repayments at any time and reduce the interest you pay. If we agree, you can also redraw extra repayments you made when you need them. Terms and conditions and eligibility criteria apply.
Loan term and security options
Choose the term of the loan to suit your business and cash flow needs. Longer terms are available for secured loans. Businesses typically provide residential or commercial real estate as security.
Understanding loan rates and fees
Interest rates
Rates will depend on your individual circumstances.
Variable rates are made up of the Business Options Prime Indicator Rate and your Customer Margin (available upon application).
Our current Business Options Prime Indicator Rate is available on our business lending indicator rates page.
Fees and charges
Available upon application.
Interest periods
Monthly, quarterly, half yearly and annually options available.
Understanding small business loans and repayments
Variable rate loans
- Your interest rate could change over the life of the loan, due to business and market conditions, including changes in the Reserve Bank of Australia (RBA) official cash rate.
- You can make additional repayments during the life of the loan, which may reduce the amount of your loan and the total amount of interest you may pay. This may result in you paying off your loan faster.
- If you’re ahead on your repayments, a variable rate loan may let you redraw any additional repayments you have made to pay for unexpected expenses.
Fixed rate loans
- A fixed rate loan allows you to lock in your interest rate for an agreed period. It gives you certainty of your repayment amount and protection against interest rate rises during the fixed rate period.
- Your rate will switch to a variable rate at the end of the fixed period.
- You are unable to make extra repayments or redraw during the fixed rate period.
Interest-only loans
- Interest-only loans allow you to pay only the interest due on the loan for an initial period. This may reduce the impact on your cash flow, as repayment amounts are lower .
- At the end of the interest-only period, the loan needs to be repaid in full.
- Some loans allow you to have an initial an interest-only period, after which the repayments increase to include principal payments required to pay back the loan. For these loans, the payments automatically switch from interest-only to principal and interest when the interest-only period ends.
Principal and interest (P and I) explained
- The principal is the amount you borrow, and the interest is the amount you're charged by the lender for borrowing the principal amount.
- Principal and interest repayments include payments for both the principal and interest portions of your loan.
- You can make principal and interest repayments on either fixed or variable rate loans, with options to pay monthly, quarterly, half yearly or annually.
Access our Business Loans Repayment Calculator to learn more about how to calculate the repayments of business loans.
Grow and invest in your business with a flexible business loan
Step 1. Consider loan options
Take the time to compare your loan options and find the right fit for your business goals. Need help deciding? A NAB business banker can guide you through the available options.
Frequently asked business loan questions
What‘s the difference between secured and unsecured business loans?
It’s important to understand the difference between secured and unsecured business loans. A secured business loan is backed by collateral, such as property or equipment, which reduces the lender’s risk. An unsecured loan does not require collateral, making it riskier for lenders and often results in higher interest rates.
How do I get a business loan?
To get a business loan, assess your financial needs and compare your business loan options based on these needs. Then, complete the application process by providing necessary documentation and information about your business. Speak to a NAB Business Banker if you need help getting started.
What documents do I need to apply for a business loan?
When considering the documents needed to apply for a business loan – you’ll need financial statements, tax returns, a business plan, proof of identity, and details about your business’s structure and operations. Specific requirements may vary depending on the loan you’re applying for.
How long does it take to get approved for a business loan?
Approval times can vary, but it typically takes anywhere from a few days, to several weeks, depending on the complexity of the application and the type of business loan you’re applying for.
How much can I borrow for a small business loan?
The amount you can borrow for a small business loan is based on several factors including your business’s revenue, credit history, and the loan policies – using the NAB QuickBiz Loan as an example – the amount may range from $5,000 to $250,000.
Other options to consider
NAB QuickBiz unsecured business loan
Fast, unsecured business lending made easy. Get access to funds for your business without physical assets as security.
NAB Business Markets Loan
Manage borrowing costs and protect your business against interest rate changes.
Business car and equipment finance
Find the right finance solution for your vehicle and equipment needs.
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