Commercial loans include the purchase of business loans, business operations loans and commercial real estate loans. A lender of a commercial real estate loan can be a business operator who buys commercial real estate for investment or business use. It can also be used by someone who has a full-time job but looking for an investment opportunity.

Commercial real estate loans have many of the same places as home loans, but they are different in terms of loan ratio, interest rate, and required income.

Commercial real estate loans, like home loans, involve the same issues in real estate, including borrower credit, mortgages, loan documents, loan evaluations, loan contract signing, and loan management. However, commercial properties involve business operations, making commercial loans more complex and requiring more professional assistance.

The mortgaged property can be a factory/warehouse, a retail store, an office building and a complete unit (including 4 units or more), or kindergarten. Once the lending institution is interested in the loan program, a formal application can be submitted.

A business operation loan is a business operator applying for a loan for business purposes. The business must be operated for more than three months in the current management (if it is a new business for six months), the loan can be used for any business purposes, such as improving cash flow, buying inventory, paying wages, marketing promotions, etc. It requires the business to have a certain level of turnover including mortgages and unsecured loans, one year to pay off or a longer repayment period.

Commercial Loan types

Commercial loans can be used to purchase equipment (Equipment Finance), expand the size of the business or increase the investment in the business (Expand or Invest in Business).

Line of Credit

A credit line loan is a common commercial loan. It refers to a credit facility that a credit institution grants a certain amount of credit to customers. The customer can recycle the amount for a specified period of time. The credit line loan provides you with a way to use funds at any time. It can provide short-term capital turnover for enterprises, improve the speed of capital flow of enterprises, and improve the efficiency of capital use.

Commercial Loan interest rate

Commercial loans have both a Variable Rate and a Fixed Rate. Variable interest rates provide greater flexibility for corporate funds, but as interest rates continue to change with market interest rates, the amount of repayments is uncertain. Choosing a fixed interest rate means that the company can repay the fund in accordance with the prescribed repayment amount within a fixed period, so that the flow of funds can be better managed.

What you need for loan application

  • Applicant’s Identification documents
  • The most recent tax return and business financial statements
  • Applicant’s individual tax return and notice of assessment for last two years
  • Specific requirements will vary depending on the loan institution and the applicant

For details, please contact our loan specialist on 1300 990 166.

1300 990 166
Loan Health Check
Follow Wechat