Commercial property
Buying premises or an investment?
Owner-occupied premises for your own business, or commercial investment property held for the lease income. The assessment differs between the two.
COMMERCIAL
Finance for the business, not just the house
Commercial property, business acquisition, working capital and equipment — assessed on the business as much as on you.
IN SHORT
Commercial lending is assessed on the business behind it
Where a home loan focuses on your personal income, commercial lending looks at the trading performance of the business, the quality of the security, and the strength of any lease attached to it.
That brings different terms. Loan-to-value ratios are generally more conservative than residential lending, terms are often shorter, and pricing is set case by case rather than from a rate card. Many facilities are reviewed periodically rather than simply running to term.
It also brings more room to negotiate. Commercial credit is less standardised, so how the application is presented genuinely affects the outcome.
WHY IT HELPS
What we arrange
Business purchase
Acquiring a business or a share of one?
Funding an acquisition, a partner buy-in or a succession arrangement, usually assessed on the business's demonstrated earnings.
Working capital
Need funding for cash flow?
Overdrafts, lines of credit and trade facilities to cover the gap between paying suppliers and being paid by customers.
HOW IT WORKS
How commercial credit gets assessed
Presentation matters here in a way it does not for a standard home loan. A well-prepared application with clean financials and a clear explanation of the proposition gets a materially better hearing than the same numbers submitted raw.
- Financial statements and tax returns, usually for two to three years
- Interim figures and aged debtors where the request is time-sensitive
- Lease details, tenant quality and expiry profile for commercial security
- A clear picture of what the funds are for and how they will be repaid
- Directors' personal position, since guarantees are commonly required
IS IT RIGHT FOR YOU
Commercial lending in practice
This tends to suit you if
- The business has a trading history — documented earnings make the assessment straightforward.
- The security is conventional — standard commercial property in a recognised location.
- There is a strong lease in place — tenant quality and lease term both support the valuation.
- Your records are in order — current financials shorten the process considerably.
Worth weighing up
- Deposits are larger — commercial LVRs are more conservative than residential.
- Terms are often shorter — with periodic review rather than a set-and-forget structure.
- Personal guarantees are common — directors are usually asked to stand behind the facility.
- Specialised security is harder — unusual property types narrow the lender options sharply.
How working with us actually goes
Step 1
We start with a conversation, not an application
Step 2
We work out what you can borrow and what it costs
Step 3
We prepare the application and deal with the lender
Step 4
We stay across the loan long after settlement
COMMON QUESTIONS
Questions we get asked about this
How much deposit is needed for commercial property?
Commercial lending is generally more conservative than residential, and the required contribution varies with the property type, the lease in place and the strength of the borrower.
Specialised or single-purpose properties usually require a larger contribution than standard office, retail or industrial security.
Can I use equity in my home for a business purchase?
Often, yes, and it can produce better pricing than an unsecured business facility because residential security is cheaper for the lender.
It also puts your home behind the business, which is a decision worth making deliberately rather than by default.
How long do commercial loans run?
Terms are typically shorter than residential loans, and many facilities are subject to periodic review where the lender reassesses the position.
That is normal in commercial lending, but it means you should not assume a facility simply continues untouched for decades.
Will I need to provide a personal guarantee?
In most cases involving a company borrower, yes. Lenders commonly require directors to guarantee the facility.
The scope of a guarantee is negotiable in some circumstances, and it is worth getting legal advice on what you are signing.
How long does a commercial application take?
Longer than a home loan, generally. Assessment is manual, valuations on commercial property take more time, and lenders often come back with questions.
Having current financials ready at the outset is the single biggest thing that speeds it up.
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Where people usually go next
GET IN TOUCH
Tell us about the business and what you are funding.
Would rather talk it through?
(02) 9659 1694Important information
The information on this page is general in nature. It has been prepared without taking your objectives, financial situation or needs into account, so it is not personal advice and you should consider whether it is appropriate for you before acting on it.
Any rates, figures or examples shown are indicative only. Lending is subject to approval, and lender eligibility criteria, terms, conditions, fees and charges apply. Talk to us about what your own circumstances allow.