Some of our clients have asked us “what is a comparison rate?” when purchasing a motor vehicle.
A comparison rate helps customers recognise the true cost of a loan
A comparison rate includes both the interest rate and the fees and charges involving taking out a loan. Together, they are combined into a single percentage figure, known as the “comparison rate”. Banks and other lenders are legally required to display one when advertising any loan.
It is made up of:
- the amount of the loan
- the term of the loan
- the repayment frequency
- the interest rate
- the fees and charges connected with the loan.
Essentially it is a really useful tool for borrowers to compare the cost of different loans. However, you should consider the loan’s features as a whole. Don’t focus solely on the comparison rate. Contact BJT if you need assistance with understanding the features of your business loans. And for support in considering the financial impact of a business loan.
Better Business, Better Life with BJT Business Advisors
BJT Business Advisors is based in Berwick. We love working with businesses and family groups all over Australia. Our empathy, along with the experience and expertise, mean our clients are well looked after now and for the future.
Read more about our services here or get in touch with BJT Business Advisors on 03 9709 2600 today to discuss your business structure requirements. Or follow us on Facebook or Instagram for the latest news.