flagFounded: 1959 as Metway Bank, Merged to become Suncorp in 1996
businessOwned by: ASX Listed
monetization_onFunded by: Retail deposits and wholesale capital markets
account_balanceLender type: Bank
Suncorp Commercial offers a simple process and good interest rates for small commercial loans up to $1 million. While they can help with business loans, they’re really after commercial property investors and that’s what they’re best at.
They have a Business Banking department which specialises in loans over $1 million and lending to specialised industries.
How do Suncorp Commercial’s loans compare?
They’re great at
But they’ve got some drawbacks…
- Borrowing over $1 million has stricter credit requirements
- Maximum loan term is 15 years for commercial security
- Unlikely to accept people with bad credit
- Suncorp Small Business doesn’t have a big presence outside of QLD
- You only get the most out of Suncorp Commercial if you have a good contact
Why keep to under $1 million?
Suncorp has a Small Business Division for loans under $1 million and a Business Banking Division for larger commercial loans. They have different lending rules and often quite different interest rates.
Suncorp has their Small Business Division because 30% of their home loan customers are self-employed so it makes sense to have an offer to help these customers with business loans or commercial property.
Once you go over $1 million it’s harder to get approved and you may find other banks are more competitive.
What can Business Banking do that Small Business can’t?
Business Banking can consider applications that are more complex. Some examples are:
- Start-up businesses
- Relying on profit projections
- Primary production / Agribusiness loans
- Self-Managed Super Funds
- Property developers
- Unusual or specialised security
Examples of specialised security include Taxi Licenses, Franchises, Management and Letting Rights, News Agencies, Hotels, Motels and Caravan Parks, Real Estate Rent Rolls, Child Care, Pharmacies and Commercial Insurance Agents
Our Commercial Loan Experts can assist to choose the right lender. Call us on 1300 889 743 or complete our free assessment form online.
What commercial & business loan types do they have?
Suncorp’s Term Loan is a standard set and forget facility that has a lower rate and less flexibility than other loan types.
Their Business Essentials Loan is usually the lowest rate loan, however this can depend on what specials Suncorp has at any given time. You can use this to buy a commercial property as an investment or to buy your business premises.
Their Business Ready Package allows you to combine multiple loans under one package to reduce your fees. Since the ongoing fees for this package are over $400 a quarter it only makes sense to use this if you have several commercial loans.
Suncorp has both Secured and Unsecured Overdrafts however unsecured overdrafts tend to have small limits and high rates, similar to a credit card.
Tip for applying with Suncorp Commercial
Use Suncorp Bank’s actual documentation requrements checklist to prepare for your commercial mortgage application.
Note: This is the latest submission checklist as of July 2016. Please refer to Suncorp Commercial for their most up-to-date document requirements.
Suncorp Commercial client story: Rosemary, Vic
- To refinance two commercial loans to get a better commercial interest rate.
Having recently lost her husband and reaching retirement age, Rosemary was looking to refinance two office buildings they owned together in their trust to get a better interest rate.
The loans on the office buildings were coming to the end of the fixed rate period and the commercial loan was through a private lender that was charging quite a high interest rate.
The properties had grown in value in the last few years meaning Rosemary could refinance at 50% of the property value (LVR). She also had little debt to her name so felt she was in a good position to get a great price with another lender.
Rosemary was currently director of her late husband’s company and, luckily, he kept on top of his financials.
With full income evidence showing strong business financials and rent income from other properties they owned together, she was able to qualify for a full doc commercial interest rate with Suncorp Commercial and save tens of thousands over the life of her loan.
In addition, they charged Rosemary a flat $500-600 application fee, which is different to a number of other lenders that normally charge 1-2% of the property value.
Satisfied with her debt to income ratio, Suncorp didn’t ask Rosemary for an exit strategy because they were satisfied that her superannuation could cover any outstanding debts and leave her with more than enough buffer for cover living expenses in retirement.
Rosemary didn’t cash out and simply kept the two commercial investments within the trust for succession planning purposes.
Compare Suncorp Commercial to other lenders
Our Commercial Loan Experts can find the best deal for your business or commercial property loan!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.