Commercial Property, Lending, and Business Finance
When looking to secure funding for your business or purchase commercial real estate, having the right people in your corner is essential. A commercially accredited and experienced Commercial Mortgage Broker is one of those key people.
Why You May Need a Commercial Mortgage Broker:
Lending for a commercial property, whether for your business or as an investment
Buying a new or existing business
Constructing a commercial property
Securing funding for your trading business
Investing in Commercial Property:
Investing in commercial property comes with its own set of advantages and challenges. While it can offer high returns, it’s often harder to source funding and may have higher vacancy rates. Understanding funding options, deposit requirements, and available rates is crucial when considering commercial property as an investment.
Borrowing for Business Funding:
Securing funding to purchase a business or support a trading business is a different type of lending altogether. Some banks specialise in trading entities, others excel with franchises, and bank preferences for industries can change frequently. A Commercial Mortgage Broker stays updated on products, policies, and lender appetites to find the best solutions for your needs.
The Commercial Lending Difference:
Lending in the commercial space is vastly different from residential lending and requires specialised qualifications and experience. At Sphere, we have a dedicated Commercial Broker who focuses exclusively on these clients.
Benefits of Using a Commercial Mortgage Broker:
Objective Advice: Bank staff can only advise on their own products, but a Commercial Mortgage Broker has access to a wide range of lenders and can strategically compare options.
More Options: Lenders vary greatly in their appetite for property types, business types, and franchises. Loan-to-Value Ratios (LVR) and rates differ significantly, and a broker ensures you’re not limited to one bank’s offerings.
Customized Solutions: Every transaction is unique. A broker tailors solutions to your specific needs, often involving multiple lenders to achieve the best outcome.
Paired Lending Options: Brokers can blend residential and business lending, ensuring only the business portion is at higher rates while using projections, financials, and other data for assessment.
Real-Life Scenarios We’ve Helped With:
A medical professional constructing their business premises: Secured over 100% of the build and fit-out costs using two lenders, ensuring appropriate entities borrowed for each segment.
An employee purchasing their employer’s business: Combined equity from their home and projected income from the business.
A residential investor diversifying into commercial property: Avoided cross-collateralization by separating securities across all properties.
A franchise purchase: Mixed deposit secured against an investment property with additional funding secured against the trading franchise.
Things to Watch for in Commercial Lending:
Annual Reviews: Some lenders require yearly financial reviews for business loans. Others may adopt a more flexible approach or avoid reviews altogether.
General Security Agreements (GSA): Aim to secure loans solely against the property or deposit. GSAs, if not negotiated properly, can give the bank control over all present and future business assets.
Cross-Collateralization: This can be particularly risky in commercial lending. Keeping securities separate helps prevent lenders from controlling multiple assets simultaneously.
Meet Melanie Rose, Sphere’s Commercial Broker:
With over 20 years of finance experience, Melanie Rose brings strong relationships with lenders and partners to source nontraditional lending solutions for her clients. Having left "bank land" over seven years ago, Melanie leverages her banking expertise alongside the flexibility of working across multiple lenders to craft tailored strategies.
Melanie is solutions-focused, always advocating for her clients, and collaborates with lenders to secure the best outcomes. If you’re looking to buy commercial property or fund a business, Melanie is in your corner.
Ready to take the next step in commercial lending? Contact us today to book an appointment and explore your options - please email hello@spherehomeloans.com.au