Commercial Loans and Business Loans
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Commercial Loans and Business loans – Your Guide to Commercial Lending & Commercial Loan Options
As a business owner or commercial property investor, you understand the importance of capital to fuel your growth and expansion.
Whether you are interested in buying a commercial property, making investments in new equipment, or consolidating business debt (which may involve ATO debt in certain situations), we are here to assist you.
The purpose of this extensive guide is to provide a thorough examination of the diverse range of commercial loans that are currently accessible, highlighting the potential advantages they offer and explaining how they can potentially facilitate the achievement of your business and investment goals.
Commercial Loans and Business loans – Your Guide to Commercial Lending & Commercial Loan Options
As a business owner, you understand the importance of capital to fuel your growth and expansion.
Whether you’re looking to purchase a commercial property, invest in new equipment, or consolidate business debt, or even ATO Debt commercial loans could provide the financial support you need.
In this comprehensive guide, we’ll explore the different types of commercial loans available, their benefits, and how they may be able to help you achieve your business goals.
Introduction to Commercial Loans
When it comes to starting a business or expanding an existing one, it is generally expected that there will be a significant financial commitment involved.
The funds needed for this could potentially be provided by the owner or owners of the business, or alternatively, they could be obtained through borrowing.
Consider commercial loans as a potential solution. The purpose of commercial loans is to support business owners and property investors in funding growth and development plans, avoiding the use of personal or business funds.
Whether you are a commercial property investor, a small business operating as a sole proprietor, or a larger business with multiple employees, finding the right commercial loans can potentially provide you with the essential funds to successfully achieve your goals.
Commercial loans provide borrowers with the flexibility to choose terms ranging from the standard 15 years all the way up to 30 years. These loans come with the option of annual reviews or without them, ensuring that borrowers have the freedom to select the repayment structure that suits their needs. Furthermore, commercial loans offer competitive interest rates and personalized repayment options that are specifically designed to cater to the unique circumstances of each borrower.
Lenders have a comprehensive understanding of the distinct needs of both commercial property investors and businesses, which is why they provide a diverse selection of loan products tailored to meet various requirements. Whether you are interested in purchasing a new commercial property, financing equipment, or consolidating debt, there are options available for you. In fact, some lenders even offer the opportunity to consolidate ATO debt along with other debts.
Commercial loans may be able to provide the financial resources you need to drive your business forward.
Types of Commercial Loans
Individuals, sole traders, companies, trusts, or SMSF’s have a range of possible options to consider when it comes to purchasing or refinancing commercial property.
The primary objective of these loans is to provide support to commercial property investors and business owners by enabling them to acquire the property they require for expanding their operations.
Commercial property loans can be the solution to your funding needs, whether you are seeking office space, industrial property, or retail property, allowing you to bring your vision to life.
Depending on your specific scenario, certain commercial property loans may provide competitive interest rates, flexible repayment terms, and loan amounts that are tailored to meet your individual needs.
Lenders consider factors such as the property’s value, location, and potential income when determining the loan amount and interest rate.
When you opt for a commercial property loan, you have the opportunity to acquire the perfect space for your business or investment purposes, all while reaping the benefits that come with owning property.
Commercial Lease Doc Loans
Commercial lease doc loans provide a viable financing option for self-employed individuals, investors, or businesses with limited financial documentation.
Providing access to those without conventional proof of income. To assess eligibility for a commercial lease doc loan, lenders look beyond tax returns and financial statements and also consider the lease agreement and rental income.
Typically, these loans only require minimal financial documentation, with lease income covering the interest, often referred to as lease only interest cover.
Commercial lease doc loans offer the flexibility and convenience needed by self-employed individuals or commercial property investors.
These loans enable the purchase of commercial property and rely on lease income as evidence of debt repayment, eliminating the need for additional income or documentation.
Commercial Private Loans
For business owners who may not meet the strict criteria of traditional lenders, commercial private loans offer an alternative financing option.
Private lenders, in many cases, tend to be more flexible and open to collaborating with borrowers who possess distinct financial situations or credit backgrounds, albeit at a potentially greater expense.
Commercial private loans could provide the necessary funds to support business growth and development.
Loan applications may be evaluated differently by private lenders, with some considering the potential of the business and the value of the assets being financed.
This has the potential to enable them to offer financing options to businesses that may not meet the criteria set by traditional lenders.
Business owners who find themselves in need of financial support have the option to consider commercial private loans. However, it is important to note that they should expect to pay higher costs compared to traditional lenders.
Commercial Loan Refinance
If you currently have commercial loans in place, refinancing them could prove to be a savvy financial decision. With commercial loan refinance, you have the opportunity to swap out your existing loan for a new one that provides more advantageous terms.
Refinancing offers various advantages, such as the potential to secure a lower interest rate, extend the loan term, or gain access to additional funds for your business.
One potential benefit of refinancing your commercial loan is the possibility of reducing your monthly repayments. This, in turn, could have a positive impact on your cash flow, allowing you to allocate freed up capital towards other pressing business needs.
When considering refinancing, it is crucial to thoroughly evaluate the expenses involved, including application fees and potential break costs, in order to determine if the benefits outweigh the costs.
Commercial Loans at Home Loan Rates
Accessing affordable financing can pose a challenge for commercial property investors, small business owners, or self-employed individuals.
One way to address this issue is by offering commercial loans at home loan rates, meaning that commercial finance can be obtained at interest rates equivalent to those of residential home loans. However, the eligibility for this option may vary depending on the security being used.
With the potential to significantly reduce borrowing costs, this could make commercial loans more accessible for small businesses and commercial property investors.
Commercial loans at home loan rates may provide more competitive interest rates, flexible repayment options, and loan terms that align with residential home loans.
By taking advantage of this opportunity, both commercial property investors and small business owners have the potential to reap the benefits of residential home loan rates, providing them with affordability and flexibility, while also obtaining the necessary funds for their commercial requirements.
80% LVR Commercial Loans
When purchasing a commercial property, having a larger deposit can provide various advantages.
With a commercial loan that has an 80% loan-to-value ratio (LVR), you have the advantage of being able to borrow up to 80% of the property’s value, thereby decreasing the deposit requirement. Investors and businesses who are interested in acquiring commercial property can benefit from the flexibility and accessibility that this type of loan offers.
With 80% LVR commercial loans, borrowers can enjoy the benefits of competitive interest rates and repayment terms that can be customized to their preferences. The reduction in the required deposit amount is a key feature of these loans, as it enables businesses or investors to more easily invest in commercial property and secure the necessary space for growth and success.
Industrial Property Loans
If your business operates in the industrial sector and requires specialized property, industrial property loans can provide the necessary financing. These loans are specifically designed to help businesses acquire industrial properties such as warehouses, workshops, and manufacturing facilities.
Industrial property loans offer competitive interest rates, flexible repayment terms, and loan amounts that align with the value of the property. This type of loan provides the financial support needed to secure the ideal industrial property for your business, enabling you to optimize operations and drive growth.
Commercial Low Doc Loans
Commercial low doc loans, also referred to as alt doc loans, are a viable financing option for self-employed individuals or business owners who have limited financial documentation.
Typically, for these loans, you only need to provide minimal financial documentation, which usually comes in the form of BAS statements, business bank statements or an accountant’s declaration.
The main benefit of this is that it allows individuals without the usual proof of income documents, like tax returns and financial statements, to have access to commercial Alt doc or low doc loans.
Self-employed individuals can benefit from the flexibility and convenience offered by commercial alternative documentation or low documentation loans.
The potential uses for these loans include the purchase of commercial property, refinancing of current loans, or the release of equity specifically for business purposes.
By reducing the documentation requirements, commercial alt doc or low doc loans make the application process more efficient and allow for faster access to funds.
Commercial Bad Credit Loans
If you have a less-than-perfect credit history, securing financing for your business can be challenging. However, commercial bad credit loans offer a solution by providing access to funds despite previous credit issues.
These loans are specifically designed for business owners with a poor credit history and provide an opportunity to rebuild credit while obtaining the necessary funds for business growth.
Commercial bad credit loans offer competitive interest rates and flexible repayment terms. Lenders assess loan applications based on the potential of the business and the security offered, rather than focusing solely on credit history. This allows business owners with bad credit to access the financing they need to recover and thrive.
SMSF Commercial Loans
Self-managed superannuation funds (SMSFs) provide individuals with the opportunity to invest in commercial property using their retirement savings. SMSF commercial loans allow the fund to borrow funds to purchase commercial property, which may provide a tax-effective investment strategy.
This offers individuals the potential for long-term capital growth and income generation while benefiting from the possible tax advantages of superannuation.
SMSF commercial loans have specific eligibility criteria and borrowing limits. Lenders assess the financial position of the SMSF and the potential income from the commercial property when determining loan approval. These loans provide a unique opportunity for individuals to diversify their investment portfolio and secure their financial future.
Commercial Warehouse Loan
Commercial warehouse loans offer the essential financial support for businesses that necessitate warehousing facilities, enabling them to acquire or even construct the perfect space.
These loans offer competitive interest rates, flexible repayment terms, and loan amounts that align with the value of the property.
Commercial warehouse loans enable businesses to secure the space they need to store inventory, streamline operations, and optimize supply chain management.
Whether you’re looking to purchase an existing warehouse or construct a new facility, commercial warehouse loans provide the financial support to make it happen.
Commercial Loans No Annual Reviews
Traditional commercial loans often require annual reviews to assess the borrower’s financial position and determine ongoing loan suitability.
Nevertheless, it is worth noting that certain lenders do offer commercial loans that do not require annual reviews, presenting borrowers with a financing alternative that is simpler and less burdensome. By eliminating the need for annual reviews, these loans offer businesses not only greater financial stability but also reduce the administrative burden.
When considering commercial loans that do not require annual reviews, you can find options that provide competitive interest rates, flexible repayment terms, and loan amounts tailored to meet your specific needs. By removing the necessity for yearly reviews, these loans offer businesses the reassurance they need and the ability to dedicate their attention to their primary operations.
75% LVR Commercial Loans
Similar to their 80% LVR counterparts, 75% LVR commercial loans provide businesses or investors with the opportunity to borrow up to 75% of the property’s value. These loans offer businesses or investors the opportunity to acquire commercial property with reduced deposit requirements, while also providing flexibility and accessibility.
With a Loan-to-Value Ratio (LVR) of 75%, commercial loans offer borrowers the benefit of competitive interest rates and the convenience of flexible repayment terms.
The ability for businesses or investors to borrow a larger portion of the property’s value allows them to secure the necessary space without draining their working capital or cash reserves.
Security Property Types for Commercial Loans
When applying for a commercial property loan, the type of property being financed can impact eligibility, loan terms, and interest rates. Here are some common security property types for commercial loans:
For businesses that require office space, commercial loans can provide the necessary financing. Office space loans allow businesses to acquire or lease office premises, providing a dedicated space for operations, administration, and client meetings. Lenders consider factors such as location, size, and potential rental income when assessing office space loans.
Office space loans offer competitive interest rates, flexible repayment terms, and loan amounts that align with the value of the property. These loans provide businesses with the financial support needed to secure the ideal office space and create a professional working environment.
Industrial property loans cater to businesses that require specialized facilities such as warehouses, workshops, or manufacturing plants. These loans offer the necessary funds to acquire or construct industrial property, enabling businesses to optimize operations and streamline supply chain management.
Industrial property loans provide competitive interest rates, flexible repayment terms, and loan amounts that align with the value of the property. Lenders consider factors such as location, size, and potential rental income when assessing industrial property loans. These loans enable businesses to secure the space they need to support their operations and drive growth.
For businesses in the retail sector, retail property loans provide the necessary financing to acquire retail premises. These loans enable businesses to establish a physical presence, attract customers, and showcase their products or services. Lenders consider factors such as location, foot traffic, and potential rental income when assessing retail property loans.
Retail property loans offer competitive interest rates, flexible repayment terms, and loan amounts that align with the value of the property. These loans provide businesses with the financial support needed to secure the ideal retail space and create a welcoming and attractive environment for customers.
Residential Property for Commercial Use
Residential property for commercial use refers to properties that are zoned for both residential and commercial purposes. These properties offer businesses the flexibility to operate from a residential area while benefiting from the convenience and accessibility of a commercial location.
Lenders consider factors such as the property’s location, potential rental income, and the business’s suitability for the residential area when assessing loans for residential property for commercial use.
Loans for residential property for commercial use offer competitive interest rates, flexible repayment terms, and loan amounts that align with the value of the property. These loans provide businesses with the financial support needed to operate from a residential property while complying with local zoning regulations.
The type of security property for your commercial loan will depend on your business’s needs, industry, and growth plans.
Financing Options for Different Business Needs
Commercial loans offer diverse financing options to meet the unique needs of businesses across various industries. Here are some common financing options for different business needs:
Businesses often have to make a significant financial commitment when purchasing equipment. Equipment finance is a method that allows you to obtain the necessary funds to acquire the equipment you require, all while preserving your working capital.
Equipment finance is a great option for those who require new machinery, vehicles, or technology, as it offers loans that are tailored to fit your specific requirements.
Lenders offer flexible repayment terms and competitive interest rates for equipment finance. This allows you to spread the cost of equipment over time while benefiting from the immediate use and productivity gains that new equipment provides.
For businesses seeking to enhance their operations without the weight of a substantial upfront expense, equipment finance presents itself as a sensible financing alternative.
Medical Equipment Loans
For healthcare professionals and medical practices, acquiring new equipment is essential to provide high-quality care. Medical equipment loans offer the necessary funds to purchase medical equipment, ensuring that healthcare providers have access to the latest technology and tools.
These loans offer competitive interest rates and flexible repayment terms tailored to the unique needs of the healthcare industry. Medical equipment loans provide healthcare professionals with the financial support they need to enhance patient care and improve operational efficiency.
Vehicle and Equipment Financing
Purchasing vehicles, machinery, or equipment can be a significant investment for businesses. Vehicle and equipment financing provides the necessary funds to acquire these assets without depleting working capital or cash reserves. These loans offer flexible terms, competitive interest rates, and tailored repayment options.
Whether you need to upgrade your fleet, invest in new machinery, or acquire specialized equipment, vehicle and equipment financing can provide a cost-effective solution.
When lenders evaluate the value of the assets being financed, they may offer financing options that allow you to secure up to 100% of the value of the vehicle or equipment. This enables you to obtain the necessary funds while also benefiting from the immediate use and productivity gains associated with acquiring new equipment.
Managing cash flow is a common challenge for businesses, especially those that rely on invoices for payment. Debtor finance, also known as invoice financing or factoring, provides a solution by allowing businesses to access funds tied up in unpaid invoices. This could provide immediate cash flow to cover operating expenses and invest in growth opportunities.
With debtor finance, businesses are provided with flexibility, as they can access funds whenever necessary, depending on the value of their outstanding invoices. Lenders typically provide an advance of a certain percentage, usually ranging from 80-90%, of the total invoice value. In certain instances, lenders may even handle the collection of payment directly from the customer, although you also have the option to manage the collection process yourself.
This financing option ensures that businesses have the necessary working capital to meet their ongoing financial obligations.
For businesses facing temporary cash flow challenges or unexpected expenses, short-term business loans offer a quick and accessible financing solution. These loans provide the necessary funds to bridge the gap between income and expenses, ensuring that businesses can continue their operations without disruption.
Short-term business loans offer flexible repayment terms, typically ranging from a few months to a year. They provide businesses with the financial stability to overcome short-term challenges, seize growth opportunities, or invest in necessary improvements. Lenders assess the business’s cash flow and ability to repay the loan within the specified term.
These financing options cater to specific business needs and provide the necessary funds to support growth, manage cash flow, and invest in essential assets and equipment.
The Right Loan For Your Situation
Unlike other banks and brokers that most commonly cater for wage earners (not business owners), and are restricted to selling their own or brand-approved lending products (whether they are right for you or not), we specialise in working with business owners and have access to hundreds of loan options from dozens of lenders to ensure you get the right loan for your situation.
We Don’t Just Find You a Loan
While other banks and brokers merely find you a loan, we look at your whole financial situation and help you structure your finance to protect your assets.
We Even Do The Paperwork
Once we find the right home loan, we pre-fill all the forms to save you time and maximise your approval success. And we review everything each year to ensure you’ve always got the right home loan for you.
The team at Pro Options has more than 48 years of combined experience helping self-employed business owners and other indiviuals get fast approval for better finance. Here’s what some of them say about their results and experience with our team:
A Huge Thank You To Alex From Our Mortgage Options!!
A huge thank-you to Alex from Our Mortgage Options!! I came across Alex about 18 months ago when my partner and I were trying to get into the housing market as first home buyers. Thank god we found Alex and had him on board to help us with our journey. He guided us all the way from getting our pre approval to buy our land and house making everything so easy and stress free. He found us a great loan and bank, explaining everything we needed to know in plain english. He managed everything related to our bank including progress payments and inspections with his communications always prompt causing no delays. Thank-you Alex for helping us to get our first home:)
I have been working with Alex for 12 years and he has been wonderful to deal with, his knowledge and client focus have saved me thousands of dollars. Highly recommended!
Alex and his team are top notch brokers and always goes beyond the call of duty to help clients, I would recommend his service to anyone needing finance.
My Investment Refinance Journey Paid Huge Dividends!!
“As an experienced investor who has required finance for property purchases whether they be for land, units, houses or for construction both in NSW or interstate, I’m always after a better deal. Ultimately the better the deal, the more dollars I can drive back into further investments to achieve my financial freedom dreams and fund my lifestyle that includes a comfortable family home, private school fees for my children, numerous overseas trips, and stepping ever closer to leaving the rat race behind. Recently in this strange Covid-19 world, Alex at Our Mortgage Options managed to refinance my exisiting mortgages and secure me additional construction loan finance that has now paid off handsomely. I’m basically at minimum now $500 a month (or $6000 a year) better off with reduced interest rate payments meaning that the next project after this new property is built, is not that far away. The refinance journey due to financial institution compliance can sometimes be excruciatingly long and frustrating but with Alex in your corner, well worth it!!”
Alex was extremely helpful throughout our 1st home purchase. He made the process smooth and hassle free. He is well versed in his field and we would recommend his professionalism to anyone who is needing the guidance that he offered in serving us.
Great mortgage brokers. These guys will give you great advice in terms of the best home loan product. Speak to these guys before going to your bank. You won't regret it.
Our Six ‘A’ System To Help You
Get The Right Finance -- Fast
We take time to understand your needs and financial situation so we can source and structure the right loan to save you interest & fees while protecting your assets
We compare loans from dozens of lenders and negotiate rates, fees, and conditions on your behalf – all at no cost
We present you with several options, explain all the details, and give you our professional recommendation
We pre-fill and package your application (saving you hours of admin) for maximum approval success
We follow up to ensure everything goes smoothly (with no mistakes) right through to settlement day
We regularly review everything to ensure you can be confident you have the right loan for your situation.