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SMSF lending
Buying residential or commercial property through your self-managed super fund, with the right structure from the start.
Find out more : SMSF lendingD-08
Commercial loans
Commercial Property Loans
Plain English. Properly structured.
Commercial lending works differently to home loans. The property, the lease and the business all come into it. We help business owners and investors across Australia finance shops, offices, warehouses, factories and mixed-use buildings. We're based in Oakleigh, Victoria.
01 — What it is
Commercial loans, in plain English.
A commercial property loan is used to buy, refinance or release equity from non-residential property. That includes retail shops, offices, industrial units, warehouses, medical suites and mixed-use buildings with a shop below and a dwelling above. Some lenders also treat larger residential holdings, like a block of units on one title, as commercial.
Commercial loans usually have shorter terms than home loans, and some carry periodic reviews where the lender reassesses the loan. Lenders typically lend a lower percentage of the property value than they would for a home, so you generally need a larger deposit or other security.
If you're buying premises for your own business, the lender looks at the business's financials and whether it can comfortably meet repayments. If you're buying as an investor, the lease matters most: the tenant's quality, the remaining term, rent reviews and who pays outgoings. A strong lease to a reliable tenant can make a big difference to the terms on offer.
We help you present the deal clearly, compare lenders and specialist commercial funders, and structure the loan to suit your business or investment plans. Where SMSF is part of the picture, we work with your accountant on that too.
02 — Who it suits
Is this the right fit?
- [A]Business owners buying their own premises
- [B]Investors buying leased commercial property
- [C]Owners refinancing commercial loans approaching review
- [D]Buyers of mixed-use shop-top properties
- [E]SMSFs buying commercial property, alongside their adviser
- [F]Clients anywhere in Australia, with a home base in Oakleigh, Victoria
03 — How it works with us
From first chat to settlement.
- 01Stage 1 of 4Understand the deal
Understand the deal
We look at the property, lease or business and your goals, and tell you what lenders are likely to focus on.
- 02Stage 2 of 4Package the application
Package the application
Commercial lenders want a clear story. We pull together the financials, lease and property details in a format they can assess quickly.
- 03Stage 3 of 4Compare terms
Compare terms
We compare banks and specialist lenders on rate, term, review conditions and covenants, not just price.
- 04Stage 4 of 4Settle and monitor
Settle and monitor
We manage valuation and settlement, and keep track of review dates so they do not take you by surprise.
04 — What lenders look at
What you'll need.
| Ref | Item | Why it matters |
|---|---|---|
| M-01 | Contract of sale | Or the current title if refinancing. |
| M-02 | Lease | For investment property: the full lease, including options and outgoings. |
| M-03 | Business financials | For owner-occupiers: two years of business financial statements and tax returns. |
| M-04 | Interim figures | Current-year profit and loss if the last return is a while ago. |
| M-05 | Entity documents | Company or trust details if purchasing in an entity. |
| M-06 | Asset and liability statement | A summary of what you own and owe. |
| M-07 | Rent roll | For multi-tenancy buildings, current rents and lease expiries. |
05 — Common mistakes
What to avoid.
Check 01
Ignoring lease expiry
Check 02
Overlooking review clauses
Check 03
Using residential thinking
Check 04
Not checking zoning and use
Q-01How much deposit do I need for a commercial property?
Typically more than for a home loan, but it depends on the property, lease and lender. We will give you a realistic picture once we know the details.
Q-02Can my business buy its own premises?
Yes. You can buy personally, through a company or trust, or through your SMSF. Each has different tax and lending implications, so speak to your accountant.
Q-03What is a commercial loan review?
Some commercial loans include periodic reviews where the lender reassesses the loan. It can lead to changes in terms. We track these dates for you.
Q-04Can I get interest-only on a commercial loan?
Often, for a period. It depends on the lender and your situation.
Q-05Is a shop with a flat above residential or commercial?
Usually commercial or mixed-use, depending on the lender. Policies vary, which is why comparing matters.
Q-06Do you arrange commercial loans outside Victoria?
Yes, Australia-wide. We are based in Oakleigh, Victoria.
07 — Related
Related loans.
D-03
Development finance
Duplexes, townhouses, small subdivisions and multi-unit projects. Finance structured around feasibility, presales and exit.
Find out more : Development financeD-10
Car & equipment finance
Vehicles, machinery and tools for your business or personal use, structured to suit your cash flow and your accountant.
Find out more : Car & equipment financeFrom the blog
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08 — Enquire
Tell us what you're planning.
No cost and no obligation. We'll help you understand your options and what the next step looks like.
Prefer email? Write to help@ridgefinance.au.