Continuing on from our article yesterday ‘Part 5: What factors impact your loan interest rate? – Industry’ we explore factors that impact the term and interest rate of a commercial facility:
Cross guarantee (guarantor) – This type of arrangement allows for another company or firm to at as a guarantor to the business making submission. With this type of relationship in place the lender is provided with an extra layer of security which should equate to a cheaper rate of interest and a more flexible term.
This guarantor can belong to the same director or a friends, spouse or family member, nor does it need to be a business operating the same sector.
Ensure you research the market before progressing with any new facility, rates and term can wildly vary based on then aforementioned. Click, connect and stay up to date with the latest business news by starting a live chat, calling in or requesting a call back.