Comparison Rate (Business Finance)
A comparison rate is a consumer-loan figure that combines the interest rate and most fees into one number. It’s mainly used for personal credit — not most business lending.
For business finance (vehicles, equipment, and low doc facilities), you’ll usually compare offers using the repayment schedule, total interest, fees, and any balloon/residual — not a comparison rate.
If you’re self-employed and want a work car, ute or van without waiting on full tax returns, start with low doc vehicle finance and we’ll confirm eligibility, documents, and timing.
Why comparison rates don’t fit business lending
- Business facilities are often structured (terms, balloons, fees) in ways a single “rate” can’t summarise.
- Tax outcomes and cashflow strategy can change the true cost materially.
- Many commercial approvals rely on different evidence standards than consumer credit.
That’s why quotes for Vehicle Finance and Low Doc Asset Finance are usually compared using the repayment breakdown.
What to check instead (fast)
- Monthly repayment and total repayable
- Fees (establishment, monthly, documentation)
- Balloon / residual value and end-of-term options
- Term length and repayment frequency
- Fixed vs variable structure (where applicable)
If two offers have similar repayments but different fees/balloons, the “cheaper” deal can flip fast — always compare the full schedule.
Why don’t business loans show comparison rates?
How do I compare business finance offers properly?
Does a lower interest rate always mean a cheaper deal?
External reference: ato.gov.au