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Re: What can I use a commercial loan for?

Posted: Wed May 13, 2015 11:11 am
by Otto Dargan
Hi and welcome to the forums awesome.

Lenders may evaluate your commercial property loan application based on the purpose of the loan. If you’ll be using the loan for:
  • An investment, then it may be considered a low risk loan, and it may be easier for you to qualify for it.
  • The purchase of an owner occupied property, then it will be considered a medium risk loan. This applies when you’re taking out the loan to buy or refinance a commercial property that’s leased to or occupied by your own business.
  • Working capital, then it will be considered a high risk loan. It may be difficult to take out the loan if you plan to finance the day to day operations of your business.
  • Any other purposes, whether it’s commercial, business, or for investment purposes, it will be evaluated on a case by case basis.
However, it should be noted that some commercial lenders may not approve your application if you’re using a commercial property as security for a loan that’s not used for business or investment purposes.

Cheers,
Otto

Re: What can I use a commercial loan for?

Posted: Thu May 14, 2015 9:22 am
by Otto Dargan
Hi awesome,

Most lenders may be willing to lend you:
  • 80% of the property value for a loan up to $1 million.
  • 75% of the property value for a loan up to $2 million.
  • 70% of the property value for a loan up to $5 million.
Lenders may consider your application on a case by case basis if you are taking out a loan anywhere from $5 million up to $50 million.

It is important to note that other factors such as the nature of your security may also determine the amount that you may be able to borrow. For instance,
  • If you are using a residential property as security then you may be able to borrow 100% of its value.
  • If you are taking out a lease doc, low doc, or a no doc loan then you may require a larger deposit.
  • If you are buying a specialised security property then you may require a larger deposit.
If you would like to know more about commercial property loans then you can check out our website. We can also be reached on 1300 889 743 or fill in our free assessment form to see if you qualify for a loan or not.

Cheers,
Otto

Re: What can I use a commercial loan for?

Posted: Mon May 25, 2015 10:49 am
by Otto Dargan
Hi rage,

The term of a commercial property loan is typically determined by the security that is being offered to the lender. They may offer various options for term of a loan, such as:
  • 30 year term: This term is available only if you put a residential property as security.
  • 20 - 25 year term: Some lenders may provide you this term if you put a commercial property as security.
  • 15 year term: Most lenders may offer this term only for a commercial property loan.
  • 5-7 year term: Lenders may offer this term for commercial equipments.
  • Shorter terms: Short terms are normally used for invoice discounting, short term business loans, and development loans.
If you want more information on commercial loans then you can check out our website.

Cheers,
Otto