CBA launches interest rate Flexi Loan
(21 August 2007 – Australia) Commonwealth Bank has launched a new cash flow product called Flexi Loan to help businesses manage interest rate exposures.
CBA executive general manager, Corporate Financial Services, Robert De Luca said drought, high oil and commodity prices were impacting Australian businesses and price movements affected cash flow.
He said managing interest rate exposure was something Australian businesses were increasingly looking to do in the current climate of rising rates.
De Luca said interest rate risk management strategies available through Flexi Loan were adaptable depending on businesses’ preferred risk management strategies, including caps, collars and fixed rates.
"We anticipate that businesses that will be looking for this kind of flexibility are those involved in agriculture, manufacturing and property development that typically have variable or seasonal cash flow requirements or need to draw down funds on a periodic basis," he said.
He said managing interest rate exposure was something Australian businesses were increasingly looking to do in the current climate of rising rates.
De Luca said interest rate risk management strategies available through Flexi Loan were adaptable depending on businesses’ preferred risk management strategies, including caps, collars and fixed rates.
"We anticipate that businesses that will be looking for this kind of flexibility are those involved in agriculture, manufacturing and property development that typically have variable or seasonal cash flow requirements or need to draw down funds on a periodic basis," he said.
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