What is a commercial loan?

Commercial loans are a type of finance that can be taken out by individuals, partnerships, discretionary trusts and other groups, on behalf of a business or company. These loans are used to fund commercial operations that can help grow and develop a business

How do commercial loans work?

Commercial loans work much the same as other loan types but are specifically used for business purposes. They can be taken out by individuals or partnerships on behalf of businesses to fund operations, equipment and commercial property. As the loan amount will be used to invest in the business, the financials of that business will be taken into account when the lender is deciding whether to approve the loan.

There are also various benefits to commercial loans, as they are tailored for use by businesses. They offer flexible repayment options to support fluctuations in cash flow and the loan amounts on offer are usually much higher than with other loans. There are also related products specifically designed for commercial purposes, such as leasing finance.

Can you use a commercial loan to buy a property?

If you’re looking to invest in commercial property, you’re generally looking at properties designed for use as an office, retail or industrial space. Unlike residential property that has relatively low risks and offers lower returns, commercial property has the chance of a bigger return on investment, but at a higher risk.
Buying commercial property is also more expensive and maintaining or upgrading it can potentially cost you thousands of dollars. In addition, commercial properties typically experience higher vacancy rates and this is why they have a higher risk quotient than residential properties. Commercial property loans are specifically designed for buying business property and may offer better commercial interest rates, but you can also use a normal commercial loan for this purpose.

How we can help

This means you’ll need to understand both the commercial real estate and commercial finance markets. That’s where we can help, every step of the way.

  • Provide expert knowledge and advice.
  • Find the ideal financial solution for your short and long-term business needs.
  • Establish how much you can borrow.
  • Manage the application process, from paperwork to approval.

We work with the banks to get it right for you

We deal with banks and other financial institutions every day, we’re always up to date on exactly what they require to approve your application.

Getting it right the first time ensures you have more of a chance of getting the finance you want as quickly as possible.

Most importantly, we’ll negotiate with the lender on your behalf. We make sure that the financial product you choose offers you the right combination of rates, fees and structure that meets your goals, and will ultimately help build the success of your business.

Contact us