Do I have to move my banking to the lender I borrow from?
Sometimes, yes. Plenty of bank facilities come with a condition that your main trading account moves across. It is written into the offer rather than raised in conversation. Non bank lenders rarely ask, because most of them do not run transaction accounts at all. The condition is not always negotiable. It is almost always worth pricing, because moving your banking has a real cost that never shows up in the interest rate.
Why lenders ask for your transaction account
Two reasons, mostly. Visibility is the first, since a lender that watches the money moving through the account sees trouble earlier than one reading annual financials. Pricing is the second. Banks price a relationship, not just a loan, so the rate on offer often assumes the deposits and the merchant facility come with it. You will sometimes see the condition written as a covenant, which means the facility can be reviewed if the account activity dries up. Ask which it is before you sign.
What switching actually costs you
The rate might improve. The admin behind it rarely gets counted. Direct debits, payroll files, merchant terminals and the accounting software feed all have to be redone. Staff time is the part owners underestimate. There can be break fees on term deposits or a period where two accounts run side by side. Ask the lender to hold the pricing if you keep your existing bank, or to stage the move after settlement. Some will. If the answer is no, at least you priced it before agreeing.
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Last updated 15th July 2026. Reviewed by Authorised Credit Representative 554584 of Australian Credit Licence 414426.