Commercial Loans

Commercial loans via bank, non-bank, mortgage funds and private lenders giving you the best opportunity in gaining a commercial loan approval


How to get simple commercial loans? Some lenders provide a range of short term lending products to assist you.  Firstly, the factors determining whether or not you get approved for an investment property loan are different as the requirements are more demanding.

Commercial mortgage lenders look at many financial aspects including:

  • Property appraisal
  • Credit check
  • Down payment
  • Debt Service Coverage Ratio…

A property appraisal is required to determine market value of the commercial building and accompanying land. The appraisal keeps the lender from inadvertently loaning you more money than the real estate is worth, thereby reducing the risk of loss for the lender.

Commercial loans in terms of a property’s value is based not only on the condition of the external building as this includes roof,  plumbing, fire and other systems, also on the size, location and accessibility of the place.

Down payments are another determining factor in whether or not you get approved for commercial loans. You want to discuss specific needs with a commercial property lender which understands investing from an investors perspective.

In other words…get a proactive lender which is an investor with a property portfolio. Preferably lender has experience in property development which gives you an edge in the market by helping you to achieve your financing objectives fast and efficiently.

Commercial lenders have different loan requirements, yet the basics remain the same. Make sure to shop around and ask each lender how he or she determines its approval. Large down payments are usually required for an investment property mortgage loan, with the minimum being 20 percent of the price.

The average down payment is between thirty to forty-five percent. You are then provided with commercial loan based on remaining amount of purchase price. The amount you are loaned compared to actual price is called loan to value ratio (LTV).

You can be competitive in the commercial loan market by doing your homework and coming fully prepared to the negotiating table.

There are many ways to skin a cat in terms of creative finance to structure and present private money deals with private lending partners. If your loan request fits their lending criteria, they can immediately provide a “Letter of Interest” and a loan approval.

Whether you are a property investor or developer wanting a low interest rate or a highly geared developer seeking mezzanine finance and or joint venture partners, you need a funding solution to cater for your strategic needs, right?

What finance specialises in providing property developers with high loan to cost ratio finance facilities? It is possible for you to borrow up to 90% of project hard costs? Can you get equity funds or private lenders to lend on construction finance without pre-sales?

A property investor or property developer’s ability to get new projects directly across the line, relates to the amount of equity or cash a developer is required to contribute to the project.

Are you a property developer? Real estate development is not an easy process if you’re inexperienced. There can be considerable risks involved however once you get the necessary knowledge and experience it can be a great way to fast track your wealth.

Commercial loans through the proper financial structuring means you can maximise a developer’s debt gearing to free up your capital for the next project, which all relates to the commercial loans and understanding the financial needs of developers…

commercial loans
Commercial loans

Commercial loans is all about giving reasons for approving the loan and getting the lender to say YES, which leads you and I to getting the right commercial loan. It is not about cheapest interest rate, it’s about building a strong relationship between you and your lender.

You want to understand what motivates and sets their lending criteria. What are the needs of your commercial lender in terms of risk mitigation and for you in meeting it for lender to say yes…actually taking away all the reasons why the lender would say no.

You can satisfy what you want in a commercial loan by understanding what you’re borrowing against as a security in the form of assets or property which fits your needs, goals and puts you in a stronger financial position to take advantage of opportunities in the future.

How to significantly reduce your commercial loan risk:

Structuring: You want to understand your whole portfolio to ensure funding is both cheap and flexible and make sure it fits you rather than suiting the lender

Scale: You want your lender to bring a number of transactions to funders and present you as a more important client in their eyes so you leverage off lenders relationship

Independence: You want to remove emotion from negotiations with tough conversations to get you the best outcome

Security: You want lender to constantly monitor and update your facility to ensure your deal is competitive, also protects you from any unexpected changes in policies where they may want more equity or a quick refinance…

In other words…you want to leverage the most relevant types of commercial loans including non-banks for example:

Full Doc Commercial Property Loans for commercial loan borrowers who can demonstrate full financials for at least two years and completed Tax Returns. Full Doc Commercial Loans with achieve the lowest most competitive interest rates.

Low Doc Commercial Property Loans for commercial loan borrowers who cannot demonstrate serviceability through traditional means however can obtain an accountants letter confirming that the borrower can afford the loan repayments.

Low Doc Commercial loans are sourced through Non-Bank Lenders, Mortgage Funds and Private Lenders.

No Doc Commercial Property Loans / Asset Lend for commercial loan borrowers which cannot demonstrate serviceability through traditional means however can get an accountants letter confirming the borrower can afford loan repayments.

No Doc Commercial loans are sourced through mortgage funds and private lenders.

Credit Impaired Commercial Property Loans for commercial loan borrowers which have credit impairments such as defaults and judgments on their credit files.

Often they cannot demonstrate serviceability through traditional means, however can get an accountants letter confirming the borrower can afford loan repayments.

No Doc Commercial loans are sourced through mortgage funds and private lenders.

There are fixed or variable rate commercial loan products and many commercial mortgages to choose. Through experienced and knowledgeable financial consultants you’re able to solve complicated debt structures for your benefit of maximum loan amounts.

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Commercial loans can take longer to establish and more work in terms of being proactive, so start networking with lenders and high net worth individuals which are able to match your commercial loan requirements with one of the many and varied lenders…

Commercial Loans

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