Getting a business loan to buy a Commercial Property with the help of our experienced financial consultants will give you peace of mind and ensure you get the best deal.
Business Loans for Commercial Property Acquisition are a necessity for thousands of small business owners who want to purchase their own premises or investment property. Owning your own commercial property can have many benefits and in the process, you acquire an asset that is likely to increase in value.
How does a Commercial Property Loan work?
A commercial property loan is one secured via the purchase of commercial real estate such as office premises, retail space or industrial premises to name a few.
The loan is secured by a mortgage or in some cases a caveat. Borrowers often use the funds for their business, for the property or for other investment reasons. The commercial property may be the one you use for your business or any other profit-generating purpose.
Types of Commercial Property Loans
The following property purchased can all fall within commercial property finance:. These may include the following:
- Commercial Property Acquisition – This would include properties such as; offices, industrial properties, warehouses, factories, childcare and aged care facilities, shopping centres, unit blocks, medical centres, service stations etc. Typically, any type of property which can be considered an investment for yourself or your business.
- Acquisition of Commercial Property using your Self-Managed Superannuation Fund to provide equity support.
- Property Development Finance – including duplexes, apartments, townhouses, home and land packages or complex land subdivisions.
How much can I borrow?
We work with commercial property deals of all shapes and sizes from smaller acquisitions through to multi-site or large-scale investments in the hundreds of millions of dollars. When pursuing a commercial property loan it is worth noting at the deposit of 30% is generally required to proceed. Following on from the deposit required the amount which can be borrowed largely depends on:
- the property’s value,
- the income stream it generates and
- your ability to pay the loan
You can also put equity towards the acquisition either as cash, or equity built in your residential property or even from your Self-Managed Superannuation Fund.
What information is required for Commercial Property Finance?
The information required to secure commercial property finance will vary greatly depending on the client, loan type and lender. However as a general base you should prepare the following:
- Financial statements for the past three years
- Directors’ taxation returns
- Integrated ATO portals
Our qualified team will be able to assist you further based on your individual circumstances. For more detailed information please contact us and we will point you in the right direction.
How long does it take to transact on Commercial Property?
Financing a commercial property purchase can feel like a daunting process for both new and sophisticated investors, so allow Amfin to do the work with you and to find the right loan type and structure to ensure the best investment for you. We work with a wide variety of commercial property lenders who all have different policies and risk appetite. With so many lenders on our panel, we can find the right loan for your opportunity.
The Lender will look at your circumstances individually and assess your ability to take a loan out.
If you can provide all the information needed by the lenders, we can broker the loan for you within a 3-t4-week period. Of course, the complexity of your loan requirements usually determines the time taken to successfully obtain a loan for you.
Understanding Property Development Finance?
Property Development Finance is obtaining loans to buy a parcel of land and to build multiple properties on that land. We can provide finance for you to purchase and hold the land, called a ‘Land Bank Loan’ whilst you work on getting necessary approvals to build.
You can then apply for finance to carry out construction. There are options to utilise both private and non-private lenders when pursuing property development finance.
By speaking with our experienced team we can guide you though the policies and processes of various lenders based on our extensive panel and provide you with an End-to-End solution specifically tailored to suit your needs.
Is my business eligible for Commercial Property Finance?
The eligibility of your business to secure commercial property finance will vary greatly depending on your individual circumstance, the loan type selected and the lender. However, as a general base the following will be required:
- The required 30% deposit
- Clear credit history
- Proof of ability to repay the loan
How do I apply?
You can apply for commercial property loans by submitting a simple online application. If you would like to know more or need assistance determining the best equipment financing solution for you, one of our experienced finance consultants are happy to assist, contact us today.
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