Fixed Rate Business Loan (FRBL) April 15, 2016
FRBL’s are just that. That is, the interest rate will not rise or fall during the fixed rate term. You can fix the rate anywhere from 1 to 10 years. We strongly advise our clients to carefully consider the pros and cons of FRBL before they opt for this loan type. The penalties to exit a FRBL early can run into tens of thousands of dollars.
FRBL’s are less flexible that variable loans, i.e.
In the main, you are extremely limited in how much you can make in extra repayments
To counteract the draw backs of FRBL’s, we suggest the borrower may wish to consider a combo loan- part fixed and part variable. Ask us about our Combo Loans.
FRBL’s are perfect for investment property purchase.
Before making any decisions read this article ‘Think before fixing your interest rate’.
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