Applying for a commercial property loan

When you�re at the stage of purchasing a commercial property for your business, it can be a big decision. The property you buy could be the largest asset your business owns. While a commercial property loan can help you achieve your business goals, the size of the investment makes it all the more important to choose the right finance for your needs and purpose.

Depending on the nature of your business, you may be looking to purchase any of the below for your new premises.

• Factories
• Warehouses
• Office spaces
• Retail outlets
• Industrial sites
• Residential unit blocks
• Restaurant spaces

4 CONSIDERATIONS TO KEEP IN MIND

1. Turning to the bank to apply for a loan, whether in person or online, isn�t always the best choice and there are a few bases to cover. First, to ensure the right legal structure is set up speak to your accountant or financial planner for advice on the best purchasing entity for you to buy the property under. Secondly, consider working with a finance broker. During the loan application process with a broker, you�ll gain a partner that can offer; more choice, industry experience, specialised qualifications and someone in your corner.
2. The amount you borrow will build interest at a fixed or variable rate so make sure to decide on the loan with your long term business goals in mind. At this point, if you haven�t already, it�s a good idea to speak with a finance broker. They can offer you peace of mind on which loan is the best choice for you. SFE Loans are finance specialists and will always put your needs first when sourcing the best loan options on the market.
3. There are a range of factors that can impact the approval of your application including the type of property you�re looking to purchase, its location and whether there is any demand in properties of its kind for potential tenants.
4. When applying for a commercial property loan you�ll need to specify the purpose of the loan. If you are buying a commercial property as an investment to then lease out to a third party you may be considered a low-risk borrower resulting in better interest rates.
   On the other hand, if you�re looking to be an owner-occupier for your own business a lender may classify you as posing a higher level of risk depending on your legal structure. This could result a stricter lending criteria and a higher interest rate. In saying this, your finance broker will be there along the way to make the application process as seamless as possible.

When it comes to commercial property loans, you won�t have to worry about a thing when SFE Loans is on your side. Contact us today for a fuss-free chat about your finances.

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