Commerical Property Loans
Helping your Business Grow
Attaining new premises can increase capacity and fuel growth for your business as well as improve your investment opportunities. The right property loan for your business can assist you move your business in the right direction more effectively.
Identifying which lender can provide the right structure for your business growth is an important decision. At Zel Finance we ensure you acquire the right structure for your needs and we handle the process right from application to approval.
We have access to many commercial lenders, not just the big four. And because we’re here for you, not the lenders, we will make sure you know all the options available for your business.
Features of Commercial Property Loans
Unlike standard residential home loans, the pricing and lending policies for commercial property loans are rarely set in stone, and many of the terms can be negotiated. Below are the features and details of commercial property loans.
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The term of a commercial property loan is typically determined by the security that you offer to the bank and its use.
Available terms include:
30 year team: available for business owner occupied property or with residential property as security.
20-25 year term: available from select lenders with commercial property as security.
15 year term: The most common term for commercial property loans.
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Different types of security represent different risks to the banks. Standard commercial properties are usually the best type of security for a commercial property loan, such as: offices, factories, warehouses, retail space and shopfronts.
The loan security will also reflect the lenders deposit required.
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Because most commercial property loans don't have the same protection as home buyers, the purpose of your loan will affect how your loan is assessed and the deposit required.
Loan Purposes:
Investment: usually used to buy or refinance a commercial property that will be leased
Owner-occupied: used to buy or refinance a commercial property that is leased to or occupied by your own business.
Working capital: cash out or a line of credit used to finance the day to day operations of your business or liquidity shortfalls.
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Full doc: Individuals, companies, trusts and self-managed superannuation funds are acceptable.
Term: Up to 15 years (longer on application) or up to 30 years for owner occupied or residential security.
Interest-only: Up to 5 years (longer on application).
Interest rate type: Variable, fixed (up to 5 years) or bank bill facilities.
Additional repayments: Allowed on variable loans.
Redraw: Allowed for amounts that you have pre-paid with some lenders.
Offset accounts: Available with some lenders.
Line of credit (LOC): Available at higher interest rates.
Capitalised interest: Available for development or land sub-division finance.