Businesses may look to switch or fix commercial loan rates to achieve a better rate or different repayments through refinancing with a different lender. The interest rate is the most critical element of the finance for most businesses. It determines not only how much they need to pay each month in repayments, but the amount of interest that accrues on the loan. The repayment level can impact cash flow and profitability while the total interest bill impacts the overall cost of the acquisition which effects ROI.

With interest rates once again ‘front and centre’ courtesy of a surge in inflation, businesses may take the opportunity to review their credit arrangements and investigate if more affordable options are available to them. Options and opportunities which may place them in a better position to achieve productivity gains, gain market advantage, and improve their bottom line.

Commercial Loan Rates Outlook

The release of figures by the ABS in late 2025 showed an uptick in inflation which curbed forecasts for rate cuts in 2026. At its December meeting, the Reserve Bank left the cash rate on hold as it waited to see if this was a hiccup or a trend. The quarterly inflation figures released on 28 January 2026 unfortunately also reported an increase placing the rate at 3.8% up from the 3.4% reported in November in 2025.

While factors like the end of energy rebates and travel costs inflation from tourism with The Ashes series are given by some, the rate is now well above the RBA’s 2-3% target. A target that we were closing in on prior to these recent upticks.

The expectation by the markets is for the cash rate to be increased by the RBA. Some in the markets are tipping two increases while others just the one. No doubt the number of increases will be dependent on the next set of inflation figures due on 25 February.

Commercial credit lenders set their own rates and many strive to be competitive in the market. But if their own funding costs increase, they will no doubt increase their rates on their credit products. For variable rate loans, that could mean an increase following any RBA announcement.

How do you change commercial loan rates?

The process to change the interest rate on business credit products will depend on the type of rate and the type of loan. Asset acquisition credit products – Leasing, Chattel Mortgage, Rent-to-Own and CHP, typically have a fixed interest rate and are arranged over a fixed term.

Changing the rate on these types of loans will require refinancing. Refinancing is the process of sourcing a new loan to replace the existing loan. That new loan may be with the same bank or lender or with another lender. The credit facility may also be changed when refinancing, if desired.

If considering refinancing to achieve a better interest rate, be aware that the asset would be assessed as used, with second-hand asset finance rates applicable. These are typically higher than for new assets.

If rates across the market do rise, a better fixed rate on asset finance may be achieved through refinancing if the business has improved its credit profile or financial position since the original loan was arranged. This may be the case with existing No Doc, Low Doc and Bad Credit loans.

Variable rate finance products such as Overdrafts and Unsecured Business Loans will have rates changed when the lender changes their rate. In order to receive a better variable rate loan, the business may need to switch to a different lender and refinance the loan.

Rates do vary across the market, and a better solution may be available to you through refinancing and switching lenders. But the costs of the process should be considered against the potential gains.

While a better rate may not be feasible, restructuring the loan to achieve a more workable payment schedule may deliver real benefits to the business. Discuss your options with one of our brokers for expert advice and direction on the opportunities available to suit your individual circumstances.

Getting Better Commercial Loan Rates

Securing better interest rates on business finance may be achieved through finding a different lender, restructuring the loan and improving the credit and financial profile. The commercial lending market is highly competitive but many non-bank lenders, some of the most competitive, not readily accessible to business operators.

We provide the access to an extensive lending market and the most competitive rates and the skilled negotiators and leverage to deliver those best rate solutions. With the interest rate market looking like being unpredictable this year, securing better business credit arrangements may be beneficial.

Connect with Business.Finance brokers 1300 000 033 to discuss the options available to you to get better commercial loan rates.

DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS