Commercial Property Loans 

There are many commercial property lenders, and the lending policies for commercial property loans are varied and negotiable.  It's imperative to use a finance broker.

Commercial property types

Different commercial properties carry different risks to each lender.  Standard commercial properties are usually the best type of security for a commercial property loan.  They have wide appeal, in a good location, and zoned as commercial or mixed use.

• 1. Offices.
• 2. Factories.
• 3. Warehouses, showrooms and storage units.
• 4. Shopfronts.
• 5. Residential block of units.

Non-standard or Specialised commercial properties carry more risk to the lender as they are more difficult to lease or sell.  These may attract a different interest rate and fees.

• 1. Backpacker hostels, motel, hotel, resorts, bed and breakfast, caravan parks.
• 2. Aged care and over 55 complexes.
• 3. Car yards.
• 4. Land subdivisions.
• 5. Farms - both hobby and income producing including vineyards.
• 6. Reception centres and function halls.
• 7. Petrol stations.
• 8. Pubs, clubs and restaurants.
• 9. Commercial property developments.
• 10. Supermarkets and shops.
• 11. Waste management facilities.
• 12. Shopping centres.

Specialised properties come with a detailed valuation, which can be costly.  

Commercial property loan purpose

The way your commercial property scenario is assessed will depend on it's intended purpose:

• 1. Investment is considered low risk if it's leased.
• 2. Owner-occupied by your own business is considered higher risk than investment.
• 3. Financing the day-to-day operations of your business is considered much higher risk.
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• Income documents for a commercial property loan

• Full doc: 2 years full financials for the business and individual.
• Lease doc: Need a lease showing the rental income is higher than the loan repayments.
• Alt doc: Personal declaration, an accountant's letter and lease statement.  
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What are the typical features of a commercial property loan?

• Full doc: Individuals, companies, trusts and self-managed superannuation funds are acceptable.
• Term: Up to 30 years, however most are 25 years.
• Interest-only: Up to 5 years.
• Redraw: Allowed for amounts that you have pre-paid.
• Offset accounts: Not common.
• Line of credit: attract higher interest rates.
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Each lender targets its own niche market.  It's best to use a finance broker.  Give Matthew Stack a call directly on 0423 237 242.  No call centres.

Helping your commercial property loan get approved

Each lender has its own way of assessing your commercial property scenario.  You need a broker that knows how to navigate this market for you.  Finding the right lender isn’t easy as policies aren't that easy to decipher - unless you do it for a living.

Find the right lender 

Stick to lenders that focus on your loan and security type - never start your search with the lowest interest rate.  Usually there is one stand out bank that dominates the market in a particular area.

A lender focus on your scenario type will be more likely to get you approved as they'll know the risks and tricks in getting it done.

Know what each lender is looking for

Have your finance broker apply on your behalf.  The application is how you put your best foot forward complete with the right lender information.

This is something I can help you with as I have dealt with most commercial lenders.

Negotiate 

If your loan doesn't get approved straight away, it’s time to negotiate and see if you can resolve the problem.

We can provide additional information or alter your scenario to suit their risk profile.

Getting a low interest rate

Lenders have a risk matrix to price a larger commercial property loan.  Things they consider:

• 1. Location of the commercial property.
• 2. Condition and appeal of the commercial property.
• 3. Health of the local property market.
• 4. Loan to Value Ratio.
• 5. Length of lease.
• 6. Strength of the tenant-especially for lease doc commercial loans.
• 7. Borrower asset position.
• 8. Length of time business has operated.

Which lender will lend to your situation?  

Call Matthew Stack directly on 0423 237 242.  

#commercialpropertyloans #commercialleasedocloans