That's right.
- An Overdraft and Bank Guarantee are the ideal products as they meet the client’s needs. An Overdraft covers the short-term cash flow shortfalls between GST payments and claims throughout the construction period.
- A Bank Guarantee satisfies the client’s and favouree’s needs without the client having to use cash for deposit, bond or retention payments. It’s designed for businesses that need to promise payments to a third party, contingent on a particular event.
- Pricing for an Overdraft includes a line fee, an establishment fee and an interest rate while Bank Guarantee incurs a guarantee fee.
Note: Given the client already had a term debt facility for acquisition of the land, it was extended (with limit increase and term extension) for this phase of the project. This means we do not need to offer the client a new term debt facility.
Bank Guarantee
Rate Build-Up
Fee
Overdraft
Rate Build-Up
Rate
Not quite.
A construction loan is a consumer loan that is used for personal purposes and under no circumstances should this be used for business purposes.
Not quite.
A Better Business Loan is simple term debt facility which in this instance does not meet the client needs.
