Finance - Commercial
There are many factors which determine your eligibility for a Commercial Finance approval, most importantly your income and deposit.
As a general rule you’ll need a deposit of 30% of the purchase price of the property plus upfront costs (legals, stamp duty), you can use equity that you may have in another real estate asset to make up this deposit.
Quick Reference
Purchase price of a commercial property at the banks lending value of 70%.| Maximum lending value stand alone commercial security | ||
|---|---|---|
| Purchase price | Your deposit | Commercial loan |
| $100,000 | $30,000 | $70,000 |
| $150,000 | $45,000 | $105,000 |
| $200,000 | $60,000 | $140,000 |
| $250,000 | $75,000 | $175,000 |
| $300,000 | $90,000 | $210,000 |
| $400,000 | $120,000 | $280,000 |
| $500,000 | $150,000 | $350,000 |
Refinancing a loan
There are many factors which determine your eligibility for a refinance approval, most importantly your income and account history with your current bank.As a general rule, client are looking to consolidate some debt and find a package that may have more benefits then their current arrangement.
Many times clients look to refinance where they are purchasing another investment property (geared up) to grow their asset position. You can use equity that you may have in another real estate asset to make up your deposit (see buying an investment property).
| Product | ||
|---|---|---|
| Finance Lease | Finance with your choice of term at a fixed rate to purchase plant, equipment and vehicles for business purposes without tying up capital. | $15,000 plus and 1 to 5 years |
| Asset Finance | A tax effective way to finance plant, equipment and vehicles for your business*. | $15,000 plus and 1 to 5 years |
| Equipment Rental | Equipment Rental can be used to finance business equipment and keep pace with technology without tying up precious capital. | $5,000 plus Productive life of equipment (generally 2-4 years) |