Business finance

Commercial Property loans

Commercial property loans are used to finance the purchase or development of business premises as well as financing commercial or residential property projects and developments.

Commercial property finance

Loan size

$50K To $50M

loan term

1 to 25 years

Interest rate

4% to 12%

Approval speed

Slow

Commercial property loan

Key features of a commercial property loan

Commercial property loans differ from residential property loans in that the loan terms and pricing are unlikely to be standardised but depend on the characteristics of the development. A broker experienced in commercial property finance loans can help you negotiate better terms for financing your project.

Compare a commercial property loan

Advantages and disadvantages

Businesses that operate in industries that experience highly seasonal revenues find a line of credit especially useful to balance cash flows.

Advantages

What are the advantages of a commercial property loan

Disadvantages

What are the disadvantages of a commercial property loan

Common uses & good to know

Everything else about a commercial property loan

Common uses

Property finance is accessed by businesses ranging from developers and builders building everything from small scale residential properties to huge commercial developments or factories. Commercial property finance is also applicable for businesses looking to purchase office or retail space.

As commercial property loans are secured against property assets, these loans tend to be less expensive than unsecured loans.

There is a wide array of lenders who are keen to lend against property collateral.

Good to know

On the other hand, the loan process may be time consuming and property development loans may have caveats and specific timing requirements that need to be fulfilled.

Pricing will depend on a number of factors including the purpose of the property. Standard commercial properties such as unit blocks, warehouses or office buildings command better pricing than more specialized properties such as schools, vineyards or supermarkets.

Alternative Commercial Lending options

Other Business Finance Products​

Secured Business Loan

A secured business loan is a loan made by a bank or finance company where the lender requires the borrower to pledge assets as collateral against the loan.

Unsecured business loan

Unsecured business loans are loans made without requiring business collateral such as property or inventory.

Trade finance

Trade finance is any form of finance that is issued to support international trade, including letters of credit, debtor finance, & export credit.

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Commercial Property loan FAQ

Frequently asked questions

Similarly to a secured business loan, lenders will firstly look at the quality of your collateral in terms of the property or development and its value.

Lenders will also look at your current and historical financials and operating history as well as your credit history.

Several years of operating history as well as proof that current or projected cash flows will easily cover your interest expense will result in better loan pricing.

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