Commercial Property Loans and its Types

by Ranjan Khatak on Feb 12, 2021 Loans 178 Views

Obtaining a commercial property loan is an investment in the future of your business. Property is one section in the economy, popular for riding out the worst of a recession. That is why commercial property loan is always one of the safest approaches to make a long-term investment.  

These property loans are very different from other types of business loans and function more similarly to a home loan. These loans are essentially the same as any other type of mortgage, except they are structured for the exclusive use of the commercial property. As a business owner, it is extremely important to have a complete understanding of this loan. Most financial institutions and lenders will do an in-depth analysis of the property as well as the income potential and will be able to advise a business owner on the correct way of structuring commercial property real estate loans 


Go through the article below and explore what are commercial property loans and what type of funding and loan options are available for the Australians to purchase a commercial property for their business.  


What are commercial property loans?  


Commercial property is a type of loan that is purchased by business owners to conduct their business operations effectively. Likewise, there’s a commercial property loan that is designed particularly for the business owners and allow them to establish income-producing properties for business use. These loans offer funds that can be used for making investments only in business premises and space and are mostly secured by a lien on the commercial property.   


The commercial property finance can be taken for a variety of properties. Some of the properties considered eligible for commercial property loan are given below:  

  • office space  

  • retail stores or shopping centres   

  • factories or warehouses  

  • industrial sites  

  • residential unit blocks  

  • specialist properties like medical centres, restaurants or apartment complexes 


Types of commercial real estate loans  


There are three most common types of commercial real estate loans. We've explained each of these loan types in the list given below:  


  • Permanent Loans    

A permanent loan is the first mortgage on a newly built commercial property. A permanent loan must have some amortization and a term of at least five years mentioned in the contract.  


  • Small Business Administration (SBA) Loans   

SBA loans are written by traditional and non-traditional SBA-approved lenders. There are a variety of different SBA loans that cater to different types of borrowers, out of which the most popular one is the 7(a) loan.  


  • Bridge Loans  

A bridge loan is a short-term loan that is used to cover a company’s immediate cash flow needs while the property owner either secures long-term financing, meets an existing financial obligation or sells the property. 


Looking for experts advice on commercial property loans – visit by Your Finance Adviser  


Applying to a commercial property loan is a big decision to make for your business. That is why it is important to make sure that you’re doing it right. The team of Your Finance Adviser group in Australia will guide you thoroughly in finding the right commercial real estate loan that completely suits your requirements.  

We, at Your Finance Adviser are considered as a leading finance advising company in Australia. We specialize in providing all types of home loans in Australia and help borrowers in fulfilling their dreams of owning a home in Australia. We have a team of experienced and licensed home loan brokers that can guide the customers in finding the perfect home loan that fits into their budget.  

Contact us today to get more detailed information. You can call on 02 8322 6896 or write to us at 

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