A commercial property loan is a type of business loan designed specifically for the purchase of properties that will only be used on commercial terms. This can include properties used for warehouses, offices, retail stores, motels, and even agricultural space.
The major rule is that the property is not used as a personal residence.
Individuals can seek commercial loans to purchase property as an individual, sole-proprietor, partner, or as a business.
Commercial property loans require slightly different paperwork when compared to a traditional home loan. This is because a commercial transaction contains different lending risks than a residential one. It comes down to discussing your needs and preferences with a Lending Specialist to make sure that your commercial property goals are achieved.
As for making payments, a commercial property loan works just like any other loan. You’ll receive the total loan amount to pay for the property you want and you’ll be required to pay it back over time plus interest. The amount you have to pay per month on your repayments will depend on a number of factors including:
Loan terms can range between 10-30 years and there are a number of fees that are added on including establishment and application fees.
Here are some of the commercial property loans you can apply for:
You can apply for a loan to purchase a commercial property or refinance an existing one.
Applying for a development or construction loan is an option if you plan to develop from the ground up or build a home yourself.
A subdivision loan will increase the value of the property without having to do any additional construction. You can also use this loan for construction of the subdivided properties as well.
A mezzanine loan can help you complete an existing project or borrow additional capital if a previous commercial property loan wasn’t enough to get the job done.
The amount of money you put down for a deposit will determine your loan to value ratio. In most commercial property finance situations, you can’t have a higher LTV than 60-70% which is different again, from residential loans.
In some cases, it makes sense to have a higher LTV and keep more petty cash so you make changes, renovations, and additional purchases on a business property loan. This is one of the things that makes the two so different.
Either way, trying to maximise your LTV while ensuring you have as much money to invest in the property as possible is the smartest decision.
At Fox Finance Group, we counsel you and provide you with our expertise during the loan process. We’ll make sure you’re in the right loan package that makes the most sense for you and your financial goals.
Commercial Property Finance Made Simple
At Fox Finance Group we recognise that each one of our client’s needs for commercial property finance is different. Our aim is simple, to provide you with the most effective financial solution for your commercial property requirement. This means researching and presenting you with the most competitive funding solution.
Apply for a commercial property loanExperts in Commercial Construction Finance
Commercial Construction Loans. We can help our clients arrange new construction loans from as little as $150,000. This could be for the first-time commercial property builder to the more sophisticated larger scale commercial construction loan of $10,000,000 plus. A commercial construction loan facility is typically a type of commercial property finance that can be provided in a number of different forms. It is important to match a construction loan with the cash life cycle of the construction project.
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Do you need to purchase something for your business right now? We’ve helped thousands of Australian businesses grow by partnering with us and using smart lending strategies within their business with a clear strategy to take things to the next level.
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At Fox Finance Group we recognise that each one of our client’s needs for commercial property finance is different. Our aim is simple, to provide you with the most effective financial solution for your commercial property requirement. This means researching and presenting you with the most competitive funding solution.
Apply for a commercial property loanExperts in Commercial Construction Finance
Commercial Construction Loans. We can help our clients arrange new construction loans from as little as $150,000. This could be for the first-time commercial property builder to the more sophisticated larger scale commercial construction loan of $10,000,000 plus. A commercial construction loan facility is typically a type of commercial property finance that can be provided in a number of different forms. It is important to match a construction loan with the cash life cycle of the construction project.
Apply for a construction loanDebtor Finance Options Made Simple
Debtor Finance is also known as invoice discounting; invoice factoring; partnership factoring; disclosed invoice discounting and undisclosed invoice discounting.
Apply for a debtor finance loanUnsecured Business Loans – Money in Your Account Within 24 Hours
Do you need to purchase something for your business right now? We’ve helped thousands of Australian businesses grow by partnering with us and using smart lending strategies within their business with a clear strategy to take things to the next level.
Apply for a business loanInvoice Funding – Unlock Your Cashflow Today!
We have a number of Invoice Finance options for our customers. Imagine getting paid 80% of every invoice you issue with in 48 hours? Would that dramatically help your cashflow? WHAT EXACTLY IS INVOICE FINANCE? Invoice Finance is simply the use of outstanding debtors/accounts receivable to raise working capital. Invoice finance is not a loan it is the sale of trade debts/invoices for cash to bridge the cashflow gap between the time the sale is made and when the customer…
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Franchise Finance. Obtaining finance when buying a franchise may be difficult as many lenders hesitate to fund new franchises or new ventures. At Fox Finance Group our Lending Specialists have many years experience in securing competitive franchise funding. We have strong business relationships with a number of financial institutions and banks that can help put the dream of owning your own..
Apply for a franchise loan
You can complete your business loan application either online or over the phone with us.
We will ask you to provide proof of business income and identification.
We'll work hard to ensure your business loan approval is as close to your loan preferences as possible.
With our technology, most business lenders will allow for secure digital signing of loan contracts.
Your loan funds can often be processed within one business day. It's that simple!
You can complete your business loan application either online or over the phone with us.
We will ask you to provide proof of business income and identification.
We'll work hard to ensure your business loan approval is as close to your loan preferences as possible.
With our technology, most business lenders will allow for secure digital signing of loan contracts.
Your loan funds can often be processed within one business day. It's that simple!
The terms and interest rates can vary depending on external factors.
It is important to understand that loan products vary on a clients individual profile, and these responses are to be used as a guide only.
For a standard commercial property, you can borrow up to 75% of the land and construction costs or Land to Development Cost Ratio (LDCR) or 65% of the on-completion value. In some instances, you can borrow up to 100% with a guarantor.
Banks don’t usually accept foreign property as security.
Yes, there are many tax benefits such as addbacks. here are some examples below:
Yes, you can. You can take advantage of the competitive market by shopping around for the lowest rates, fees, and charges.
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