Buying or refinancing commercial property is a major business decision. Uniko Capital helps Australian business owners, investors, developers and self-employed applicants explore commercial property loan options for eligible property and business purposes, subject to lender criteria.
A commercial property loan is about more than the advertised interest rate. Compare the loan-to-value ratio (LVR), valuation, interest-only or principal-and-interest structure, loan term, establishment and ongoing fees, legal and valuation costs, lease income, serviceability including debt service coverage or interest cover, and exit strategy. We explain these important points in plain language so you can make a more informed business decision.
From Mulgrave and South East Melbourne to Dandenong, Clayton, Springvale, Noble Park and Glen Waverley, our team can help you start a conversation about commercial property finance Melbourne businesses can understand. We also assist with enquiries from Victoria, regional Australia and clients across Australia.
We start by understanding the property, borrowing entity, loan purpose, deposit or equity and timeframe. We then discuss the information a lender may require and help you compare the finance structure before you decide whether to proceed.
We discuss the property type, purchase price, deposit or equity, intended use, tenant position and whether the property will be owner-occupied, leased or developed.
We help you understand the rate, fees, LVR, valuation, repayments and documents a lender may require before you decide to apply.
For commercial property finance, the lender may consider the borrowing entity, business financials, income, existing commitments, credit history, deposit or equity, property valuation, LVR, lease terms, rental income, serviceability and proposed exit strategy. Self-employed applicants may also be asked for tax returns, BAS, business financials and bank statements.
Review the interest rate, establishment fees, ongoing fees, loan term, repayment frequency, valuation and legal costs, lender conditions and early payout or refinance terms before accepting an offer.
Have identification, ABN and entity documents, financial statements, tax returns, BAS, bank statements, asset and liability details, lease documents and property information ready for lender assessment.
Budget for repayments as well as council rates, land tax where applicable, insurance, repairs, maintenance, vacancy periods, property management and other ownership costs.
Commercial property finance can be structured differently for owner-occupied premises, investment property, commercial refinancing, construction and eligible development projects. We can discuss offices, warehouses, factories, retail premises, medical and professional buildings, industrial property, childcare or hospitality property and mixed-use assets, subject to lender policy, valuation and planning requirements.
Commercial property applicants should also consider GST, land transfer duty, legal due diligence, zoning, environmental and building reports, lease review, tenant concentration, insurance and the effect of repayments on working capital. Tax and ownership treatment depends on the property, entity and transaction, so ask your solicitor, accountant or tax adviser before signing.
A commercial property loan is business or investment finance used to buy, refinance, construct or develop eligible commercial property. The property is commonly offered as security and the lender assesses the borrower, property, income and repayment strategy.
Owner-occupied commercial property finance may be available for eligible businesses buying premises such as an office, warehouse, factory, shop or medical building. The lender may assess business performance, property value, deposit, LVR and repayment capacity.
Eligible property may include offices, warehouses, factories, retail premises, industrial property, medical and professional buildings, hospitality property, childcare property, mixed-use property and some specialised commercial assets, subject to lender policy.
There is no single deposit or LVR for every commercial property loan. The lender may consider property type, valuation, location, borrower strength, lease income, serviceability, security and the proposed exit strategy. A larger contribution may improve the overall position.
Lenders may review business income, financial statements, existing debt, rental income, lease terms, property expenses, valuation, interest-rate assumptions, vacancies and the ability to repay or refinance the loan. Assessment varies between lenders.
Self-employed applicants may be able to apply, subject to lender policy and assessment. Lenders may request ABN history, tax returns, BAS, business financials, bank statements, lease income and details of the borrowing entity.
Commercial property refinancing may be available where a lender is satisfied with the property value, income, existing loan, borrower position, serviceability and repayment or exit plan. Check valuation, legal, discharge and application costs.
Construction and development finance may be available for eligible projects, subject to planning, feasibility, valuation, builder, costings, presales or leasing assumptions and lender requirements. Specialist legal, tax and project advice is important.
Common documents may include identification, entity documents, financial statements, tax returns, BAS, bank statements, asset and liability details, leases, rental evidence, contract of sale, valuation and a business plan or feasibility documents.
Contact the lender as soon as possible and ask about its assistance process. Do not wait for arrears to build up. Review the loan contract and seek qualified financial, legal or accounting advice about restructuring, refinancing or other options.