Moving into the next phase of your business and need some extra funds?
Whether you’re purchasing a commercial premise, need new equipment, are expanding your business or just smoothing cash flow, as your commercial brokers we’ll assist you in making your next business move.
Are you looking for a commercial property for an investment or for your business operations? No need to be scared off; this type of investment may be more within your reach than you think.
In general, the process is very similar to buying residential property with the key differences being the requirements for larger deposits, reduced repayment terms, and slightly higher fees and interest rates.
The security and property value play a large part in commercial lending approvals. As some of these are considered higher risk, a higher deposit and more detailed property valuation analysis may be required.
If you need a tailored lending solution to help you buy a business then you’ve come to the right place.
We’ll walk you through the steps and provide helpful advice and insights into business finances. We’re not just finance brokers – we’re business owners too – so we can walk the talk!
Start preparing your financial information, including your profitability statements and cash flow statements, sales forecasts and growth potential and lets crunch some numbers to help make your move into business a seamless experience. And remember, new ventures take a little while for the banks to review so its best to start the process sooner rather than later.
Are you having thoughts about cashflow, stock and inventory levels, business vehicles, paying suppliers upfront or expanding your business? At Beyond Broking we can help you obtain these types of business loans too – and many others.
We’re fast and efficient in obtaining business loans and know what the lenders are looking for, so you’ll never miss out on an opportunity due to finance. We also understand the importance of making it a simple process so you can continue to focus on your business, while we work behind the scenes on the application requirements.
Regardless of your commercial, industrial or business finance requirements, we will help you navigate through the banks and any unfamiliar territory to ensure you obtain the most suitable loan with competitive rates.
We’ll need a few items from you to start the process which may include but are not limited to:
Proof of income (pay slips and bank statements)
A deposit backed by a proven savings history
A good credit history (we can still help if you don’t)
Commercial lending is typically more restrictive to residential lending and that is reflected in a higher deposit requirement. At least 20% plus purchase costs will be required for purchase but in some cases utilising residential property as security for the purchase can reduce this.
The assessment of this is generally different to a residential loan. In order for us to be able to calculate this we would need to assess your full financial situation.
As well as the normal fees associated with the purchase of property like stamp duty and conveyancing you will need to plan for more expensive lender related costs including valuations, application and settlement fees. It is also worth noting that given the inherent risk in commercial property ownership you should expect to pay a higher rate of interest and a reduced loan term relative to residential property.
Variable interest rates move up and down and normally relate to changes in official interest rates set by the Reserve Bank of Australia (RBA). A variable rate loan is beneficial when rates are on the decline.
Fixed interest rates don’t move. You can set (fix!) your rate for a particular period of time, normally between one and five years, and is most beneficial when interest rates are on the rise.
You should expect 15 to 20 years in repayment terms. This can be increased in some cases when utilising residential security to facilitate the purchase.