Visit our COVID-19 help page for our response and information including visiting our branches.
Skip to main content
Locate us 1300 236 344
Bendigo Bank
Business homeSuperannuation

Commercial Loans

Short and long term finance solutions for your business


Cover seasonal and working capital requirements

Choose from either the Bendigo Commercial Everyday or Bendigo Commercial Basic Account and add an overdraft to meet your day to day business cash flow needs. 

To cover seasonal and working capital requirements
Variable interest rate (calculated daily, charged monthly in arrears)
At-call access and monthly statements
Access via online banking, in branch or Debit card
Interest Rates & Fees available on application

Term Loan

A flexible funding solution

The Business Flexi Loan gives you the ability to switch easily between principal and interest, or interest only.  You also have choice in how you make your repayments - online, over the phone or in branch.

Term loan for business and commercial purposes
Principal & interest or interest only loan with a range of loan terms available
A range of pricing options available, with fixed or variable interest rates
Redraw available on floating rate facilities
Online banking, and half-yearly statements
Interest rates & fees available on application

Interest Rate Risk Products

Interest rate risk products

We offer a range of flexible tools to help manage interest rate risk and cash flows relating to borrowing facilities. Managing interest rate risk can provide both protection and opportunity. 

Protection against nominated worst case scenarios and adverse interest rate movements
Save money and get more certainty for management and budgetary purposes.
Benefit from favourable rate movements enabling lower costs and ultimately increase in profits

A swap is an agreement between your company and Bendigo Bank to exchange interest payments for an agreed period of time.  It is a powerful tool to hedge against rising interest rates.

There are always two legs to a Swap, the fixed leg and the floating leg. The customer pays Bendigo Bank a fixed rate of interest on a notional principal amount while Bendigo Bank pays the customer a variable rate of interest on the same amount.

Under the Swap agreement no principal is exchanged, just the interest payments. There is no fee payable for a Swap, the price is purely the fixed rate paid by the borrower. The parameters of a Swap are customised to suit the particular customer's needs.

The main parameters are the start and end dates of the Swap, the notional principal amount on which interest is calculated and the frequency of the interest payments. When these parameters are matched to a customer's variable rate loan the effect is to hedge their exposure to interest rate moves; the borrower ends up with a net fixed rate exposure. 

Taking out a Cap ensures the interest rate on the borrower's variable loan will not go above the specified Cap rate.

There is a premium payable to purchase the Cap which depends on several factors including the loan amount, Cap rate relative to current market rates, fixed rate term, repayment frequency and interest rate volatility.

When a borrower purchases a Cap they continue to receive the full benefit of any variable rate decreases on their loan, at each rollover date. 

A collar is a combination of an Interest Rate Cap ("Cap") and an Interest Rate Floor ("Floor"). Taking out a Collar ensures the interest rate on the borrower's variable loan will only float within the band set by the Cap and Floor rates.

This provides protection against interest rate increases above the Cap rate but also means that the borrower forgoes the benefit of any decreases below the Floor rate, at each rollover date.

The purpose of adding a Floor is to reduce the cost comparison to buying a Cap only. The premium payable to purchase the collar depends on several factors including the loan amount, Cap and Floor rates relative to current market rates, fixed rate term, repayment frequency and interest rate volatility. It is possible to set a Cap and Floor combination to produce a zero cost Collar.

A Forward Start Option gives a borrower the right without any obligation to borrow on a specified date in the future at an agreed fixed rate.

There is a fee payable to purchase the Forward Start Option which depends on several factors including the loan amount, Forward Start Option rate, time to settlement, fixed rate term and repayment frequency.

The borrower is able to choose the level at which the Foward Start Option rate is set, the lower this rate is the higher the fee will be.

A Deferred Start is an agreement between a borrower and Bendigo Bank to borrow on a specified date in the future at an agreed rate. After entering into the Deferred Start agreement the borrower is obliged to borrow on the arranged terms.

There is no fee for obtaining a Deferred Start (standard lending fees and charges still apply). The differential between the current rate and the Deferred Start rate is influenced by a number of factors including the time until settlement of the loan and the market's expectations for interest rates.

Not sure which product is for you?

Try our product selector.

Can we help you?


Send us an online enquiry for all your business questions


Contact a local business specialist today.

At a branch

View our Coronavirus page for important information about visiting our branches.

You may also be interested in

1 An Interest Rate Swap is a flexible means of effectively fixing the interest rate on a floating rate borrowing.

Subject to terms and conditions. Fees and charges apply. All loans subject to Bendigo Bank's normal lending criteria.

Need something more tailored? Talk to a business specialist

Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described on this website. Please also review our Financial Services Guide (FSG) before accessing information on this website. Information on this page can change without notice to you.

© Copyright 2020 Bendigo and Adelaide Bank