Commercial Finance covers a broad range of property and business finance such as:
- Car and Equipment Finance
- Business Loans
- Debtor Finance
- Commercial Property Finance
- Property Development
Commercial finance generally attracts a higher interest rate and higher fees than a standard residential home loan. Given this, negotiating the right package and structure for your requirements is vital. Navigator can assist with a wide range of commercial finance and has direct relationships with specialist lenders to ensure you can access a wealth of knowledge, support and assistance for your requirement even if it is outside our area of expertise.If you want to buy a commercial property or refinance your existing loan, Navigator Home Loans can help. Our expert team provide professional investors, developers and experienced owner occupiers with simple through to complex loans sourced from over a dozen lenders.
Some of the benefits of using Navigator Home Loans to arrange your commercial mortgage includes;
- Access to Australia’s commercial lenders
- Up to 75% LVR
- Full doc and low doc commercial loans
- Experienced commercial mortgage specialists
Three critical factors
Whether you are borrowing $500,000 for your first property development or refinancing a $50,000,000 equity line of credit, it’s all about the critical factors used in assessing funding application outcomes. Understanding these will give you a much improved chance of obtaining commercial funding.
Risk: It may well be a great project, but if there are delays, cost increases, lower sale prices, how will the lender recover their money? What is the history of the developer, the area, and similar projects?
Reward: See as above. Lenders actually lend money to make a profit. Sounds obvious, but many borrowers forget this to their great cost.
Equity: If you can demonstrate you have a significant amount of your own funds invested in the project it always helps in getting to the front of the queue. After all, if the lender wanted to build anything from a rainforest retreat in the jungle or an apartment complex in using 80%, 90%, or 100% of borrowed funds, they could do it themselves.
Summary: Various weighting factors & averages are applied to all the above. Knowing how to present this information is a key element, and can add much to your chances of success.
Are you considering a commercial loan? If so, having a broker to assist you through the process is vital. Contact us to arrange an obligation free consultation to discuss your needs.