UBS fixed-rate loan
The solution for capital spending
The UBS fixed-rate loan can be used to finance capital spending (not working capital) over the medium to long term. The principal, any repayments, the term and the rate of interest are fixed contractually in advance for the entire duration of the loan.
The key advantages:
- Medium to long-term credit facility with a fixed rate of interest - advantageous if interest rates are rising or low.
- Secure basis for budgeting and costing.
- Interest is charged net, i.e. without credit commission.
Terms & conditions at a glance:
- The margin is set individually and depends on the client's creditworthiness.
- Reduced interest is charged if the client provides readily realizable collateral, for example in the form of securities.
- The rate of interest is fixed two value days before payment.
- Usable currencies: Swiss francs and all common foreign currencies.
- Minimum amount: CHF 100,000 or equivalent in foreign currency.
- Maturity/term: 1-7 years, depending on the creditworthiness of the client, the likely life-span of the capital goods, the extent of any credit collateral and the client's wishes. Public entities may take out UBS fixed-rate loans for longer than 7 years.
- Termination: extraordinary partial or full repayments, early terminations, etc. are possible at any time against payment of the contractually agreed early repayment indemnity plus processing costs. Ordinary, contractually fixed repayments are processed free of charge.
- Statements of account: quarterly at the end of each quarter (March, June, September and December).
- Interest accrual: charged directly to the account.
- Disbursement: after all loan files have been put together as per the contractual agreement. N.B.: The rate of interest is fixed two value days before payment.
- Repayment: as per the contractual repayment agreement.
- Limitations: you cannot benefit from a decline in interest rates. The fixed-rate loan could mature in a period of high interest rates, which would make new financing more expensive.
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