Business Overdraft - Secured

We suggest you visit one of our Branches or else contact our Business Contact Centre on +356 2380 2389.

This depends on the source of finance requested. Loans are usually repayable over the life span of the asset and paid from profits generated from the business. On the other hand if you borrow on an overdraft basis this is repaid from incoming sales receipts or payments from debtors on an ongoing basis.

There are no early repayment fees on Business Loans and you are free to repay the facilities any time before maturity.

The interest rate is fixed for the full duration of the loan. However, the interest rate of the Overdraft is variable and is calculated at a margin over the Bank’s Commercial Managed Base rate, presently 2.35% per annum.

Yes, the bank needs to know the purpose of why a customer wants to borrow money and that the purpose fits within the Bank’s lending appetite.

Preferably better to have a bank account before applying as this will help in the overall assessment even if the bank account is held with another bank. Nonetheless if no bank account is held the bank will be asking for other information as part of its on boarding process.

You can always and still apply for a Bank Loan to finance some sort of new venture or new / additional bank finance. Past performance helps the bank makes a better judgement when applying for a bank loan and the Bank will take into consideration the total commitments of the business.

Once you’ve submitted an application for one of our products, the next stage of the process is for us to fairly and openly assess the risks involved in lending to your business.

The Bank considers as acceptable security for a Business Loan – HSBC Bank Malta plc deposits or investments, or Malta Government Stocks, or other Banks’ deposits or investments and by a hypothecary charge over a residential property.

If you own an untenanted residence in your name, you may consider a HomeOwner Loan to finance your business proposal where repayments will be spread over a longer period. HomeOwner Loans are to be secured by a first General Hypothec and a Special Hypothec over your property.

The term of the loan is to reflect the life span of the asset being financed, and is not to exceed 10 years except when the loan is being used to finance purchase of property and other exceptional circumstances.