Warehouse, shop or office
Finance for eligible owner-occupied or investment commercial premises, subject to property, valuation, lease and lender requirements.
COMMERCIAL & BUSINESS PURCHASE
Finance that fits the asset and the business.
Whether you are acquiring a warehouse, shop, office, business or another productive asset, the right lending pathway depends on more than the purchase price.
Discuss a commercial purchase ↗A DIFFERENT CREDIT ASSESSMENT
Commercial lenders assess the transaction from different angles.
A commercial property purchase may be assessed using the borrower’s business income, lease income, the strength of the tenant, the property itself or a combination of these factors. Business acquisition finance may also involve historical results, forecasts, goodwill, industry experience and the proposed ownership structure.
Lenders differ in acceptable property types, loan-to-value limits, minimum deposits, loan terms, security requirements and the income evidence they will use. My role is to identify the transaction profile first, then find lenders whose criteria may provide a supportable fit.
Business acquisition
Funding may be considered for an established business where the purchase, experience, financial performance, security and repayment position support the request.
Income-profile matching
Full financials, lease income, business cash flow or other accepted evidence may be assessed differently depending on the lender and transaction.
Deposit and security strategy
The required contribution can vary with property type, location, use, borrower strength and whether additional acceptable security is available.
A PURPOSE-FIT REVIEW
What I examine before approaching a lender.
- Purpose and assetWhat is being acquired, how it will be used and who will own it.
- Historical performanceBusiness financials, tax returns, lease income and material trends where applicable.
- Repayment sourceHow the proposed debt is expected to be serviced and how sensitive that position is to change.
- Security and contributionValuation basis, deposit, guarantees, existing debt and proposed security structure.
- Terms and costsInterest rate, fees, loan term, amortisation, covenants, reviews and possible balloon obligations.
WHERE I COME IN
A commercial application should tell a coherent story.
I help organise the finance request around the asset, income profile and lender’s credit requirements. That includes identifying the evidence pathway, comparing potentially suitable facilities and presenting the transaction clearly.
Commercial and business lending may fall outside consumer-credit protections depending on its purpose. I explain the lending features and limitations within my role and encourage accounting, tax, valuation and legal advice where the transaction requires it.
Discuss a commercial purchase ↗This page provides general information only and is not business, investment, tax, legal or financial advice. Commercial property and business finance are subject to lender policy, valuation, due diligence, acceptable security and satisfactory financial evidence. Rates, fees, loan terms, covenants and borrower contributions vary. Finance and future business performance are not guaranteed. Obtain independent professional advice before committing to a purchase.