sign in Talk to a Broker

Commercial Lending

What is a Commercial loan and how do I get one?

WE DO THE WORK FOR YOU!

Choose from 30+ lenders to access better rates and more

BUILDING RELATIONSHIPS NOW FOR TOMORROW.

Your trusted finance team through your unique journey

Commercial Lending

Commercial lending encompasses both property and business lending; allowing borrowers to gain access to funds for a large range of different business or commercial reasons.

The main differentiator between residential and commercial lending, other than the obvious types of property, is the approach lenders take when making assessments. Residential and any other ‘consumer’ lenders generally stick to a general set of policies that more often cater to the majority of loans. In most instances, lenders will tend not to veer from their particular policies. Commercial lending, on the other hand, takes a much more holistic approach due to the nature of businesses and their ever-changing requirements.

Commercial Lending Approach

This type of holistic lending more than often puts the responsibility on a particular manager or business banker to make the final call. This approach naturally comes with substantially higher risk; therefore the business lender will generally work to lower the risk by taking into account a number of factors that aren’t often used in residential lending.

Loan to Value Ratio (LVR)

LVR is the ratio of the loan compared to the value of the security expressed as a percentage. Commercial lending generally requires a much lower LVR than residential lending. Lenders mortgage insurance is not available in the commercial lending space therefore the maximum LVR allowable is less than 80%, however, depending on risk, this could be a lot lower. In an industry such as agriculture where the risks are quite large so the lender may have a maximum allowable LVR of 50%.

Cash Flow Forecasting

Many businesses are start-ups, therefore have minimal if not no history of income. In some instances, a lender may allow a cash flow forecast to ‘assume’ the future earnings of a business. This may come with a list of conditions such as owners time in the industry, if they have run a business before and if the forecast looks achievable.

Security

If buying a commercial property, more than often the property being purchased will be used as security. In a case where a borrower would like to borrow funds for business operations, there is potential they can borrow against the equity in other properties they own whether they be commercial or residential. There are several ways to do this and is where a Finance Broker can help advise on certain options that would be best suited.

How We Can Help

There are many intricacies, complexities and other factors when it comes to commercial and business lending. Far too many to simply encompass in this article. We can help you look at many different options to see what will work best for your specific situation. Our team are not only Finance Brokers. We also have qualifications in accounting and financial planning which equips us with extensive knowledge when it comes to the dynamics of business and commerce; and what requirements businesses of all sizes have.

getting into it with these tools and guides

Choosing from over 2,500 different home loan options means you can find the right loan for your individual needs. Plus, our experts will negotiate on your behalf to get you the best deal possible.

getting approved for a home loan

Whether you’re planning on selling your home soon, refinancing your home loan or are simply curious about how much your home is worth, appraisals and valuations can provide a lot of insight. We’ll explain what the difference is between a property appraisal and a formal valuation, as well how to increase your home’s value.

A property appraisal is essentially an estimate of your home’s value conducted by a real estate agent. Agents will compare your property

Darren and Breigh provided exceptional and professional service from the very start. As this was my first home I literally had no idea what I was doing. They were efficient and provided assistance every step of the way. Everything was broken down clearly and explained and they were always available to answer any questions we had. I highly recommend these two. Thank you for assisting myself and my partner securing our first home together. You two are legends!
Cam Baque Avatar
Cam Baque
11/03/2023
01. We get to know each other

Tell us a bit about yourself, your needs and home loan preferences. We’ll ask about your income, expenses, credit history, employment history and any current loans. You can complete this in your own time. Your application will be securely saved and waiting for you.

02. We find the right loan for your circumstances

Tell us a bit about yourself, your needs and home loan preferences. We’ll ask about your income, expenses, credit history, employment history and any current loans. You can complete this in your own time. Your application will be securely saved and waiting for you.

03. We do the work and settle your loan

Tell us a bit about yourself, your needs and home loan preferences. We’ll ask about your income, expenses, credit history, employment history and any current loans. You can complete this in your own time. Your application will be securely saved and waiting for you.

04. We keep looking after you

Tell us a bit about yourself, your needs and home loan preferences. We’ll ask about your income, expenses, credit history, employment history and any current loans. You can complete this in your own time. Your application will be securely saved and waiting for you.

common home loan questions

How much does it cost to use the Fundd service?

It usually costs you nothing to use fundd to get your loan. This is because we are paid by the lender with who we align you with.

In nearly all refinances, we save you a ton of money and improve your financial situation. You literally make money from us working for you.

How is this possible? The lender’s profit share with us. They opt to do this as we do all the leg work and introduce you to them. This means the lender does not need to pay for home loan writers of their own and the administrative tasks stay with Fundd ongoing too.

In rare circumstances, we need to charge a fee. If this is the case we will tell you upfront why and how much this fee will be. A fee is usually systemic of a complex lending situation.

How much can I borrow?

Head over to our calculator’s page and check them out! We have the best calculators in the business. These, of course, are not a reflection of individual banks borrowing assessments.

We can complete an accurate borrowing assessment after you fill out the client centre and we get to know you better!

How do I get started?

You can start with either questionnaire on the home page, talking to us via our chat widget, email or phone us 🙂

Do I need a conveyancer?

Yes. Whether you’re buying or selling you will need one. Contact us and we will gladly recommend a professional based on your situation.

We do not get paid for our conveyancer recommendations or share any commission payments with any of our legal professionals.

How much is stamp duty?

Head over to our calculators page and use our stamp duty calculator! We have the best calculators in the business.

 

What discounts do first home buyers receive?

You may be eligible for stamp duty rebates, first home buyers grants, or other government schemes. It will depend on what state you are in. It is best to contact us and we will let you know!

What states do you help with loans?

Australia wide. We have offices in QLD & WA and we plan to open offices in other states very soon.

Irrespective of where we are located physically, we can connect with you from our office or home-based office and assist with any of your Australian lending needs!

Do I have to see you in person?

Definitely not. The coronavirus completely changed the way we did business. Although you will see us face to face at some stage, it will usually be done via google meets, zoom or skype!

We can still cater for an in-person meeting. It is best to call, chat first and then we will arrange a time that suits you!

Do I need to submit paperwork to get a loan?

Yes absolutely! Would you give someone a loan without getting to know them?

We will only collect the information we need. The information will be sensitive and personal so we will definitely take great care of it.

We do not want any physical documents sent to us as we will not return them back to you. Please only send us soft copies as part of the fact find through our client centre.

We utilize Cashdeck to securely collect your bank statements and our CRM Mercury will store all your personal information. Head over to our privacy policy and have a read.

Will you send a recommendation?

We’ll crunch all the data and make a recommendation that we believe best serves you.

We will send you a compliance document outlining why we recommended it and how it meets your needs!

At any time if you are unhappy with the recommendation, contact your broker or team@fundd.com.au and we will review it!

We’re here to help

Our experts will help you search, choose and settle your home loan. Chat to one of our Home Loan Specialists at a time that suits you.