BOQ cuts rates for SMEs as sector’s ‘niche banker’

In line with its mission to become niche banker for SMEs, BOQ has announced rate reductions of up to 0.5% p.a. across its business lending suite.


From next Wednesday (29 October), BOQ will reduce rates on its Business Term Loans and Business Lines of Credit by 50 basis points and on its Business Overdrafts and debtor finance by 40 basis points.


In retail, BOQ will reduce its variable rate home loans on Friday, 31 October by a further 21 basis points.


This is on top of the initial 80 point announced on 8 October, and means BOQ will have passed on to retail customers more than the Reserve Bank’s 1.0% p.a. cut in the official cash rate.


Group Executive Business Financial Services David Marshall said BOQ realised that small businesses were operating in challenging conditions.


“This rate reduction proves we are competitive and very much open for business and all of this is good news for existing and potential BOQ customers,” Mr Marshall said.


“We are keeping a close watch on the volatile international credit markets, with an eye to passing on further relief to both business and retail customers where our overall funding cost permits.


“Competitive rates and quality of personalised service are key factors in an SME’s choice of bank and we are positioning ourselves as the bank for SMEs.


“BOQ is consistently found by surveys to have amongst the happiest customers of any Australian bank.


“BOQ is still the only bank offering interest rate discounts on Business Loans and Lines of Credit under a package, its Business Privileges Package.


“We continue to invest in products and services to support the SME segment.


“That is why we are able to offer market-leading deposit products, the Everyday Business Account and Business Websavings Account, a leading-edge mobile banking service for SMEs and competitive online banking services, which were recently rated 5 out of 6 stars by PC Authority magazine1.


“But although we offer SMEs remote channels for their convenience, we still focus on traditional, down-to-earth relationship banking and make sure a customer’s primary point of contact is a person.


“Many of our small business customers are managed on a day-to-day basis by an Owner-Manager who can manage loans in branch and who have a vested interest in providing their customers with great service.


“After all, who understands a small business better than another small business owner?”


1.        Source: PC Authority magazine, September 2008