Commercial Property Loans- All That You Must Know

Growing business implies growing sales and increased production, along with added expenses. More the expenses, more the funds you need. To cater to the growing needs of your growing business, you have commercial property loans to the rescue. Whether you need the funds to finance the purchase of your business or you are looking forward to expanding your business, a commercial property loan will fulfill all the requirements of your business quickly and effortlessly.

• Under a commercial property loan, you can borrow about 80% of the property price.
• Commercial property loans are to be paid off over the considerably shorter time period.
• In a commercial loan, you will be assessed on a range of different criteria that could alter the interest rate you end up with.
• For a larger loan, the lenders may even want regular access to your financial details in order to ensure that you are in a solid financial position.
• Commercial loans attract additional fees, keeping the property valuation more expensive.
• A commercial property loan does not have any ongoing fees and is available for any worthwhile purpose.
• The interest rate on a commercial loan is directly in line with the risk of your business or property other than commercial operations of your business.
• A commercial property loan allows you to make any flexible repayments or extra repayments of the loan.
• The loan pricing may vary based on the commercial property loan deposit, the gearing level, location and nature of the business.

Here is all that you must know about getting a commercial property loan-

• Type of security to be presented

To borrow a commercial property loan, you must present either of the below commercial property loan deposit types-

• Industrial factories or commercial entities
• Factories/ Manufacturers/ Car Repairs
• Childcare Facilities
• Aged Care Facilities
• Hotels/Motels/Pubs
• Service Stations
• Vineyards/ Food manufacturing
• Restaurants/ Bars/ Cafes/ Fruit and vegetable shops
• Other specialized securities
• Documentation

Before you start with the loan process, make sure that you have the following documents-

• Identity proof
• Address proof
• Proof of your income
• General Security Agreement (GSA) over the property and any of your business assets.

What is important is to get your loan approved. You may be prepared with the above-mentioned documents, etc. but you must also work on ways that will help you get your commercial property loan approved. Find below a few tips-

• Work on your choice of the lender. Make sure that the lender that you move to specializes in the type of finance that you are looking for. If you get in touch with a mortgage broker like Your Finance Adviser, they will compare different banks for different client types.
• Ask your Mortgage brokers to use tools like a mortgage calculator and give you an estimate of the interest that you would be paying for the amount that you borrow so that you plan your expenses accordingly.
• While going to a lender, you must highlight the strengths of your application and present your situation to the bank in the way the bank prefers to perceive it. Your Mortgage broker will help you respond to the forms and templates that your bank wants you to fill in, keeping you away from all the confusion and saving you time.
• If the bank does not approve your loan right away, then you must negotiate and see if you can resolve the problem. You can try negotiating with the bank by providing additional information with regard to their concern, changing your situation to better match their lending guidelines, or negotiate pricing to match the risk of your application.

To avoid stepping into complex situations while borrowing a commercial property loan with a bank, it is advisable that you seek the assistance of lending specialists like Your Finance Adviser. Their experience and specialization in the field, relationships with the banks, awareness of the competitive pricing in the industry, friendliness with the tools like a mortgage calculator, and flexible lending policies all help you gain an edge over the others while getting your loan approved.