Commercial Loans Melbourne

Things to watch

Commercial finance also comes with some practical considerations worth thinking through before you sign:

• • • Loan-to-value ratios (LVRs) and terms are different from home loans, so equity and repayments can look very different.
    • Government charges and taxes, including GST and Victorian land transfer duty, can add significantly to total acquisition costs.
    • There is cash flow risk if repayments are set too tight, or if income drops temporarily.
    • Some lenders and loan types require additional information and documentation.
    • Fit-out, professional advice and due diligence costs need to be factored into your overall budget.

Victoria’s commercial and industrial property tax (CIPT) reform is also worth understanding, as it gradually replaces stamp duty on commercial and industrial property with an annual tax over a transition period. We always recommend speaking with your accountant and legal adviser for advice specific to your situation.

Commercial Loans We Arrange in Melbourne

Loanworx arranges the full spectrum of commercial finance for Melbourne businesses, owner-occupiers and self-managed super funds (SMSFs). The right loan for you depends on what you’re trying to achieve, and we’ll help you work that out before we go anywhere near a lender. Here are the main loan types we arrange:

Owner-occupier commercial property loans

Moving from renting to owning your premises is often one of the biggest financial decisions you’ll make for your business. Owner-occupier commercial loans let you build equity in your own property rather than your landlord’s. As a guide, lenders typically lend up to around 65 to 70% of a commercial property’s value, with longer terms and additional borrowing capacity sometimes available where residential security supports the loan.

We’ll help you compare full-doc, lease-doc and self-employed pathways, and model how the repayments compare with your current rent once you factor in GST, land transfer duty and any fit-out costs.

Commercial property investment loans

If you’re buying a leased commercial property as an investment rather than for your own business, the loan structure works very differently. Lenders look closely at tenant strength, lease length and sector risk on commercial property investment loans, where the assessment focuses on lease income rather than your trading business.

Commercial construction and development finance

Whether you’re building your own warehouse, an industrial unit complex or a multi-unit residential development, construction finance is structured very differently from a standard term loan. Loans are normally drawn down progressively against quantity surveyor reports. We have access to major banks, non-banks and private lenders, plus specialist mezzanine providers when bank lines are full or pre-sales are limited. Early engagement is critical here so holding costs don’t eat into your profit.

Business term loans, overdrafts and lines of credit

Term loans, business overdrafts and lines of credit fund acquisitions, restructures, expansion and seasonal cash flow gaps. Term loans across our lender panel typically run from 1 to 15 years, with fixed or variable rates and a choice of repayment options to suit your cash flow. We help Melbourne businesses choose between secured and unsecured facilities, and structure working capital so it doesn’t strangle growth in your busiest months.

Equipment and asset finance

From a single delivery vehicle to an entire transport fleet, asset finance keeps your cash reserves intact. A chattel mortgage gives your business ownership from day one and immediate access to depreciation and GST claims, with the lender’s security limited to the asset itself. That ring-fences your business debt away from the family home. We also arrange finance lease, hire purchase and novated lease structures depending on your tax and accounting strategy.

SMSF commercial property loans

SMSF trustees can use a limited recourse borrowing arrangement (LRBA) to acquire commercial property, including the premises your own business operates from, leased back at arm’s length under a commercial lease. SMSF commercial lending has tighter requirements and a smaller lender panel, so we’ll work alongside your accountant and SMSF adviser to make sure the structure stacks up before you commit.

Low-doc and lease-doc commercial loans

If your most recent tax returns aren’t finalised, or if your assessable income doesn’t fairly represent your trading position, low-doc and lease-doc commercial loans assess your application on alternative evidence. That can include business activity statements (BAS), accountant declarations, lease income or bank statements. These are typically available for established businesses and well-leased investment properties, with a narrower lender panel that we can match against your specific scenario.

Commercial loan refinance and debt restructure

If you haven’t reviewed your commercial loan in the last couple of years, you could be paying more than you need to. As a quick example: on an interest-only $1,000,000 facility, a 0.5% rate saving over five years works out to around $25,000 in lower interest. The exact saving depends on whether you’re principal-and-interest or interest-only, your remaining term, and any switching costs.

We refinance commercial loans for Melbourne businesses, consolidate multiple business facilities, release equity for further investment, and renegotiate terms with your existing bank where switching isn’t worth it.

Bridging, private and mezzanine finance

When timing matters more than rate (competing for a property, settling before a sale, or filling a gap in a development capital stack), bridging, private and mezzanine finance can move quickly. These facilities are short-term and more expensive than mainstream lending, so they’re not suitable for every scenario. When they fit, though, they can close deals that would otherwise fall over. We’ll only suggest them when there’s a clear exit plan.

Melbourne Industries We Work With

Different industries have different lender appetites, security requirements and serviceability tests. We arrange commercial loans across the full range of Melbourne SME sectors, including:

• • • Hospitality. Cafes, restaurants, pubs, function venues and accommodation, where lenders look closely at trading history, location and any leasehold versus freehold component.
    • Retail. Strip-shop traders, specialty retailers and franchisees, where strong revenue trends and well-located premises help support better terms.
    • Professional services. Accounting, legal, medical, dental, allied health and consulting practices, which lenders generally view as strong covenants thanks to recurring fee income.
    • Trades and construction. Builders, electricians, plumbers and specialist subcontractors, where lender focus shifts to work-in-progress, debtors and equipment finance.
    • Manufacturing and industrial. Light manufacturing, food production, logistics and warehousing, where industrial-zoned premises and plant and equipment often form the security mix.

Whatever your industry, we’ll match your scenario to the lenders most likely to say yes at the right terms.

Commercial Loan Sizes and Terms

Every commercial loan is priced individually, and the right structure depends on your business, the security and the lender. As a starting point, the table below gives a working guide to what’s commonly available for the loan types we arrange for Melbourne businesses and investors.

This is a general industry guide, not a commitment. The specific loan size, term and rate available to you will depend on your business, your security, the lender and current market conditions. Speak with us about your actual situation and we’ll come back with terms tailored to you.

Want to know what’s realistic for your numbers? Call us on 1300 562 696 and one of our brokers will run through your scenario before you commit to anything.

How We Arrange Your Commercial Loan

Securing the right commercial loan isn’t just about filling in an application form, it’s about having a clear plan for your business and your finance. Here’s the process we follow with every client:

• • • Initial chat and strategy. We sit down (in person or by video) and discuss your business, current loans, goals and any property or investment plans you’re considering. No cost, no obligation.
    • Numbers and options. We review your financials, security and cash flow to understand your borrowing capacity, then identify suitable commercial loan structures.
    • Compare and decide. We approach the most appropriate lenders, compare terms and present you with shortlisted options in clear, simple language so you can choose with confidence.
    • Apply, approve and settle. We prepare and lodge your application, liaise with the lender and your professional advisers, and support you right through to settlement.
    • Ongoing review. Your business changes over time, and lender pricing changes constantly. We’ll review your facility periodically so you stay on terms that still suit you.

Why Work With a Commercial Loan Specialist

A commercial loan in Melbourne is rarely a one-size-fits-all product. Lender policies, loan-to-value ratios, serviceability tests, security requirements and rate structures vary widely between the major banks, second-tier banks, non-bank lenders and specialist commercial funders.

The right structure can release working capital, improve cash flow and protect your personal assets. The wrong structure can leave you locked into restrictive terms, or paying more than you need to. Here’s how we approach it, what we do, and how we’re paid:

We compare lenders, not just one credit policy

Going direct to one bank means one credit policy, one risk appetite and one view of your business. If your industry, structure or income profile sits outside that lender’s preferred box, the answer is no, and you’re back to square one.

A specialist commercial loan broker compares multiple lenders in parallel and presents your application to the lender most likely to approve. For more complex scenarios (self-employed borrowers, trust structures, multi-tenant commercial property, construction, SMSF or low-doc), that difference often determines whether the deal happens at all.

We translate your business into a credit submission

A commercial loan broker translates your business and your goals into a credit submission that lenders can say yes to. In practice, that involves:

• • • Understanding your cash flow, balance sheet, security position and growth plans.
    • Comparing your scenario across our wide panel of commercial lenders.
    • Shortlisting the lenders most likely to approve at terms that suit you.
    • Preparing the credit submission, including supporting analysis where helpful.
    • Negotiating loan-to-value ratio, term, interest rate, fees and conditions.
    • Managing the application from initial assessment through to settlement.
    • Reviewing your facility regularly so you don’t drift onto uncompetitive terms.

We’re paid by the lender, not by you (in most cases)

For most commercial transactions, Loanworx is paid an upfront and trail commission by the lender after settlement. The commission typically does not change the rate or fees you pay. For some commercial scenarios (typically construction, private lending and certain types of transactions), a fee for service may apply, and we’ll always disclose it in writing before any work begins. No surprises.

Commercial Lenders We Work With

It’s important to us that we offer Melbourne business owners a wide range of lender options. With access to over 1,500 products spanning the major banks, plus a deep panel of non-bank and specialist commercial funders, we can compare your current bank against a broad set of alternatives, and tailor a structure that works for your cash flow, security and long-term strategy.

Some structures even let you keep your everyday banking where it is, while using another lender for your commercial loan. We’ll explain the pros and cons of staying with your current bank versus moving, in plain language, so you can make a confident call.

Ready to Talk Commercial Finance With Loanworx?

If you’re considering commercial loans in Melbourne, whether for your own premises, a fit-out, equipment or a restructure, now is a good time to explore your options and put a clear plan in place. Loanworx is here to do the hard work, so you make the decisions.

Give us a call today on 1300 562 696 or book a free, no-obligation chat with our team. Let’s map out the right finance solution for your business, your way.

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