Part 1: An Understanding, plus the Hidden Costs
WHENEVER YOU ARE financing a commercial property investment or a business, the types of funding can be broadly classified into two categories: bill facilities and non-bill facilities.
Bill facilities are charged as a margin over the inter-bank lending rates, published each day in the Financial Review as commercial bills; while non-bill facilities are charged as a straight interest rate.
The funds for these facilities may also be raised through the money markets, but they are priced on a simple interest rate basis over a loan term. [Read more...]