Quick answer
Commercial property loans either fund the purchase of business premises or release equity from commercial property you already own. Alternative and private lenders offer them from as little as $20,000 up to $5,000,000 against offices, shops, warehouses and factories, without a valuation before approval and with interest that can be prepaid or added to the loan.
Key points
- Buy premises or release equity from commercial property
- Offices, retail, industrial and mixed-use considered
- No valuation needed before approval
- Useful when bank settlement timelines will not be met
Two common situations
Buying premises. You have found the right warehouse or shopfront, signed a contract and the bank is taking too long or has declined because of tax debt or trading history. A private first mortgage can settle on time, then be repaid when longer-term bank finance comes through.
Using equity you already have. You own your premises outright or with a modest loan. The business needs money for growth, tax or consolidation. Commercial equity can fund it without touching the family home.
What lenders consider
| Factor | Why it matters |
|---|---|
| Location and property type | Drives how easily the property could be sold |
| Tenancy | Owner-occupied versus leased affects risk |
| Zoning and use | Specialised uses narrow the buyer pool |
| Existing debt | Sets the loan-to-value ratio |
| Repayment plan | Bank refinance, trading income or sale |
Features
- $20,000 to $5,000,000 by first mortgage, second mortgage or caveat.
- No valuation needed before approval.
- Interest can be prepaid, or rolled into the loan.
- Flexible terms: keep the loan as long as you need it.
- Funding in as little as 24 hours on straightforward deals once documents are signed.
Settlement deadlines
Contracts for commercial property have fixed settlement dates. If finance is running late, raise it early so a private loan can be arranged before penalties apply. Stamp duty, legal costs and any GST treatment need to be planned too; your solicitor and accountant can advise. A bridging loan is often the tool for this gap.
An illustrative premises purchase
A physiotherapy practice has leased its rooms for years and finally has the chance to buy the building. The contract allows a set number of weeks to settle. The practice’s bank is willing in principle but wants updated financials that the accountant will not finish in time, and a small ATO balance from a slow quarter is slowing the credit team down.
A private first mortgage settles the purchase on the contract date. The practice clears the ATO balance at the same time, the accountant completes the financials, and once the bank approves its long-term loan, that refinance repays the private loan. The business paid for a few months of short-term funding and kept a building it might otherwise have lost.
Costs beyond the loan
Buying commercial property involves more than the purchase price. Budget for transfer duty in your state, legal and conveyancing fees, building and pest inspections, any GST considerations on the sale, and the cost of moving or fitting out. Your solicitor and accountant should review the contract early so there are no surprises close to settlement.
Get the property assessed
Send a 60-second enquiry with the property address, its use and what you need. There is no credit check at enquiry, a specialist reads it, and one team handles it. Ask about commercial property finance.
Frequently asked questions
Can I buy my business premises with a private loan?
Yes, often as a bridge until a bank approves long-term finance. When the bank loan settles, it repays the private loan.
What commercial properties are accepted?
Offices, shops, warehouses, factories and mixed-use buildings are commonly accepted. Highly specialised properties can be harder.
Is the property assessed differently from a house?
Yes. Location, tenancy, zoning and use all matter, which is why lenders may lend a lower proportion of value against some commercial property.
Can I use a commercial property to fund my business?
Yes. Equity in a commercial property you own can fund working capital, tax debts or growth.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a person who handles unusual deals calls you back.