As the name suggests, the interest rate can change over the life of the loan. This gives you flexibility, but can also leave you open to rate rises. These loans offer more flexible features like unlimited additional repayments, redraw, and offset accounts.

Basically, this is the opposite of a variable rate loan. Your interest rate and repayments will stay the same during the fixed term, no matter what. So no surprises.

You pay off the principal (base loan amount) each month/fortnight, as well as any accrued interest. This might help you pay off your loan faster than an Interest Only structure.

For a set period of time (usually 5-10 years) you only need to pay the interest of the loan, rather than the principal (base loan amount). This reduces the size of your repayments in the short term but might mean that it takes longer to pay off your total loan amount vs a Principal and Interest structure.

Your lender will agree to provide you with a credit limit and you can borrow up to that limit. Typically the interest rate will be higher than other alternatives due to the increased risk to the lender. You cannot get an overdraft with a fixed interest rate.

You can purchase commercial property through your SMSF. Trusts can also purchase a property. This is appealing to some people as separating ownership from your business provides asset protection.

If you are seeking finance to fund the purchase of new machinery, equipment or vehicles to support your business you’ll require an asset finance loan.

If you haven’t quite saved up enough for your deposit then a commercial property guarantor loan could help you. This means, a relative, your parents or a friend would use their property as security for your commercial loan purchase.