Whether you're a seasoned investor or embarking on your first commercial venture, understanding the intricacies of the commercial finance domain is crucial to your success. Universal Finance Corporation can guide you through the complexities of obtaining commercial property finance and help you unlock some of the market's most competitive commercial property finance rates.
Find out how commercial property finance can help you embark on your next commercial endeavour, and get in touch with Universal Finance Corporation today to get the ball rolling on your application.
As a business owner, harnessing lucrative opportunities is essential for remaining agile within your industry. However, not all business owners have the necessary capital to get their ideas off the ground. Commercial property finance is one branch of commercial finance that can help.
Commercial property finance is designed to meet the specific needs of businesses looking to purchase or renovate commercial properties. Here are some of the reasons our clients opt into commercial property finance for their next business project with Universal Finance:
Aside from commercial property financing, Universal Finance Corporation offers a wide range of lending solutions to best meet the needs of growing businesses across the country. They include:
Trust the exceptional team at Universal Finance Corporation to tailor a financing solution that propels your commercial investments forward. Contact us today to schedule a free, no-obligation consultation.
Commercial property finance is a type of lending aimed at funding the purchase, development or refurbishment of a commercial building. This can include office spaces, retail units, warehouses and other types of commercial real estate a business owner may look to acquire. The finance typically involves commercial property loans tailored to meet the specific needs and repayment capacities of business owners.
Commercial property finance is financing that can only be accessed by business owners or real estate investors, while residential finance is geared toward individuals looking to purchase a home to live or invest in. Commercial property finance may also involve higher risks and larger loan amounts than residential property finance, resulting in stricter lending criteria and often higher interest rates.
Various commercial properties can be financed, including office buildings, retail spaces like shops and shopping centres, industrial properties such as warehouses and factories, hospitality venues like hotels and restaurants and multifamily residential buildings that serve as investment properties.
Typical loan terms for commercial property finance range from 5 to 20 years, but can extend up to 30 years for certain types of properties and agreements. Interest rates can be higher compared to residential loans, reflecting the increased risk for lenders. Commercial property loans may also be structured on an interest-only basis for initial periods, transitioning to principal and interest payments later.
Commercial property finance differs widely from standard personal financing, from loan structure to fees and eligibility requirements. For instance, lenders may ask for a strong business credit history, a solid business plan and a stable income to assure lenders of the borrower's capacity to repay the loan.
Lenders may also want to evaluate the property's value, its potential to generate income and the borrower's experience managing commercial properties before issuing the loan.
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