A commercial loan is used for the purchase or refinance of commercial or industrial property. These loans are secured by the property itself using a term loan facility or bank bills.
Planning a business can be daunting, and worrying about finances for purchasing commercial property or equipment can make it even more challenging. Finding the right lender is crucial for business startups or expansions, allowing you to focus on making your business thrive. Financing a commercial property requires more effort compared to residential property, where a trusted broker’s service can be highly beneficial.
Whether your business needs financial assistance to grow, requires extra funds for day-to-day operations, or aims to leverage equity for expansion or restructuring, professional support is essential in negotiating a good deal.
Most large brokers focus on quantity over quality, but smaller brokerages like ours at PLS thrive on word-of-mouth by delivering outstanding service. We work with you to find the best solution for your business. Buying commercial real estate, either for your business or as an investment, requires significant effort. Having an experienced commercial loan broker on your team is essential to securing the best deal to help your business grow.
The lending parameters for commercial loans differ significantly from residential home loans. Commercial loan terms are generally shorter, usually around 15 years, with some lenders offering terms up to 20, 25, or 30 years. Most lenders offer up to 70% Loan-to-Value Ratio (LVR) on a full documentation basis, with a few extending up to 80% LVR.
As commercial loans are not regulated under the NCCP legislation, lenders have more flexibility in approval criteria. They consider aspects such as cash flow forecasts, business performance over previous quarters, and cash reserves in the client’s account to cover shortfalls during tough times.
Commercial Loans
Commercial loans are crucial for business growth and expansion. With our dedication and experience at PLS, we can help you navigate complexities and secure the best deals tailored to your business needs.