Commercial Loans : Australia
If you are plotting on purchasing or refinancing a commerial property then you are best advised to seek the services of an experienced commercial finance broker as opposed to a standard residential mortgage broker. A excellent commercial finance broker will have experience in structuring commercial loans throughout Australia. They will be able to give you advice, information and guide you through the entire application process. Perhaps more importantly they will have a far greater knowledge, range of appropriate lenders and industry contacts than an individual borrower would have. Using their knowledge and contacts they will be able to analyse your specific requirement and in turn structure a suitable funding package which would be the best fit for your financial requirements.
Commercial Loans are loans for properties which are zoned Commercial, Industrial, Retail, or mixed use.
Properties which are specialised such as loans for service stations, child care centres, Hotels, etc, also fall under this loan type. Residential apartment blocks are also generally considered to be commercial loans. Commercial loans can be for investment purposes or for owner occupied purposes.
The Commercial loans in Australia are available in the following general catagories depending on what financial information the borrower can provide:
Full Doc Borrowers who can demonstrate serviceability with up to date detailed financial statements covering the last two years. This is the standard loan that is available through major institutions such as banks
Lite Doc Borrowers who just fall outside the Full Doc criteria who can still clearly demonstrate serviceability through information such as rental income etc.
This type of lending is available through some institutional lenders but is generally more available through private non-bank lenders
NoDoc Borrowers who cannot provide any income verification and require in effect an asset lend. This type of loan is available via private non-bank lenders
The actual application process for commercial loans can be logistically demanding, and is once again, best left in the hands of your commercial finance broker, who becomes your intermediary and point of contact with the lenders, and will keep you fully informed of events as they transpire. Your commercial finance broker will also be on hand to help you confront and resolve any issues that may occur during the application process.
Applying and being accepted for commercial loans can be stressful and time consuming and it is certainly worth investing in the services of a professional to streamline the entire process.
