Relocating your business to a new commercial property represents a significant milestone in your company's growth journey. For businesses in Burswood considering this strategic move, understanding commercial property finance options becomes crucial for making informed decisions about your future premises.
Understanding Commercial Property Finance for Business Relocation
When buying a commercial property for relocation purposes, you'll need to access Commercial Property Loans options from banks and lenders across Australia. Unlike residential mortgages, commercial property finance operates under different criteria and structures, requiring careful consideration of your financial situation and business objectives.
The loan amount available typically depends on several factors including your credit history, business cash flow, and the property's valuation. Most lenders will assess your borrowing capacity based on your ability to service the debt whilst maintaining operational expenses during the relocation period.
Key Factors Affecting Your Commercial Property Loan Application
Several elements influence your loan application success:
• Loan to Value Ratio (LVR): Most lenders offer up to 70-80% of the property value
• Interest rate: Varies based on your credit history and loan structure
• Property type: Non-specialised commercial property often receives more favourable terms
• Business financials: Recent bank statements and profit/loss statements are essential
• Deposit requirements: Typically 20-30% of the purchase price
Lenders will also consider additional costs such as stamp duty, which varies by state and property value. Understanding these expenses helps you plan your relocation budget more accurately.
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Commercial Property Finance Options Available
When applying for a Commercial Property Loan, you'll encounter various financing structures:
Variable Interest Rate Loans: Rates fluctuate with market conditions, potentially offering lower initial rates but with uncertainty over time.
Fixed Interest Rate Loans: Provide certainty for calculating loan repayments, making cash flow planning more predictable during your business transition.
SMSF Loans: If you're considering purchasing through your Self-Managed Super Fund, specific SMSF Loan Interest Rate products are available, though restrictions apply regarding property use and tenancy arrangements.
For businesses looking at commercial property as an investment property alongside relocation, different lending criteria may apply, particularly regarding rental income projections and capital gains implications.
The Application Process Explained
The commercial property market requires a more comprehensive application process compared to residential lending. Lenders typically request:
- Detailed business financial statements
- Professional property valuation
- Business plan outlining relocation strategy
- Personal guarantees from directors
- Evidence of deposit funds
Many lenders now offer a streamlined application process, reducing approval timeframes while maintaining thorough assessment standards. Working with experienced mortgage brokers can help identify lenders offering commercial property finance solutions suited to your specific relocation needs.
Maximising Your Borrowing Capacity
To optimise your loan application, consider these strategies:
• Maintain strong business cash flow records
• Reduce existing debt obligations where possible
• Present a clear business case for the relocation
• Consider timing your application during favourable market conditions
• Explore interest rate discounts available for established businesses
Some lenders offer preferential rates for certain professions or business types. If you operate in a specialised field, loans for business owners might provide additional options worth exploring.
Additional Financing Considerations
Beyond the primary loan, consider whether bridging loans might assist during the transition period. These short-term financing solutions can provide working capital whilst your existing premises are being sold or your lease expires.
For businesses requiring flexible funding during relocation, exploring your borrowing capacity across multiple products ensures you have adequate resources for both property purchase and operational continuity.
Making Your Move Forward
Securing commercial property finance for relocation requires careful planning and professional guidance. The commercial property market offers various opportunities for businesses ready to invest in their future premises, but success depends on understanding available finance options and presenting a compelling application.
Choosing the right financing structure impacts your business for years to come. Whether you're considering variable or fixed rates, evaluating LVR options, or exploring SMSF opportunities, professional advice ensures you make informed decisions aligned with your business objectives.
Call one of our team or book an appointment at a time that works for you to discuss your commercial property finance options and start planning your successful business relocation.
