Commercial finance is available to purchase a huge range of different types of property for business or investment purposes. Whether you are starting a new business or looking at expanding your existing business, you might be considering purchasing commercial premises to occupy or to invest in.
With access to competitive low interest rates from banks and non-bank lenders, high lending ratios up to 80% of a commercial property’s value, and a network of experienced senior bankers and lenders, we are well positioned and experienced to package and set your loan with the most suitable lender.
Commercial loans are assessed and priced on a case by case scenario.
The important 4 C’s that lenders consider when assessing your application for finance:
Character
Lenders will assess the trustworthiness of a business by checking references and reviewing personal and business credit history, education and what your business experience is.
Capacity
What is your company’s borrowing history and track record of repayment? How much debt can your company handle? Will you be able to honour the obligation and repay the debt? The lender will conduct a full credit analysis, including a detailed review of financial statements and personal finances to assess your ability to repay.
Capital
A business owner’s investment into their own company sends a message of confidence in the business and the ability to repay the loan. Net worth and equity are the two key financials used. A business owner unwilling to invest their own funds sends a bad signal to the lender.
Collateral
Lenders generally prefer real estate assets as security for the loan. The type and location of the property can strengthen or weaken your application for finance.
Commercial properties vary in type and there are different lending guidelines and policies depending on the type of property being offered as security to the lender. A commercial property can be any of the following few examples:
- Retail offices
- Retail shops
- Farms and agricultural land
- Warehouses and factory units
- Restaurants and cafés
- Hotels and motels
- Shopping centres
- Child care centres
- Petrol stations
- Medical centres
Whether you are seeking a new loan to buy a commercial property or looking to refinance an existing commercial loan, give us a call on 02 8091 7070 or email us at loans@concordfinance.com.au.