Applying for a Commercial Loan
Buying a commercial or business premises usually requires a commercial loan facility. These facilities differ from home loans in many ways as does the process of application and the documentation required. Most commercial loans are limited to 20 years.
There are many lenders offering commercial facilities, so it’s a good idea to engage a broker to ensure that you get a competitive deal.
Banks assess the risk of using different types of business and commercial premises as security, so dependent on what type of property you are purchasing will factor in the amount that the lender allow you to borrow based on that security.
Generally, lenders will allow you to borrow around 70% loan to value of the property (LVR). They may allow you to borrow more if you are willing to use other property or assets as security.
Depending on what you will be using the property for, will determine what type of information a lender will require.
If you are purchasing to use for our own business, then the lender will want to assess how your business has performed over the last couple of years and a business plan going forward.
If you are just investing then the process can be a little easier, the lender will want to see that the premises is rentable or already has a tenant in place.
If you want to find out your options for purchasing a commercial property get in touch.
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We will be there to guide you through the whole process of Commercial Loans.
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