Commercial Loans

Whether you are buying commercial property, refinancing an existing facility or funding a business expansion, commercial lending requires a different approach to residential borrowing. Lenders assess the strength of both the borrower and the security differently, and having a broker who understands that landscape makes the process considerably more straightforward. At TAP Mortgage Solutions, we help businesses across Queensland, Victoria and the rest of Australia access commercial loan options from banks and specialist lenders.

How Commercial Loans Are Assessed

Commercial loans are assessed on a combination of factors: the nature and value of the security property, the income generated by the business or tenancy, the loan-to-value ratio, and the overall financial strength of the borrower or business entity. Owner-occupied commercial properties are generally viewed more favourably by lenders than investment commercial properties, and the property type - retail, industrial, office or specialist use - also affects which lenders and products are most appropriate. We work through your full commercial position before approaching any lender, which means we are matching your application to the right lender from the outset rather than finding out mid-process that a different one would have been better.

Secured and Unsecured Options

A secured commercial loan uses a property or other asset as security, which typically allows for a larger loan amount or a more competitive rate. An unsecured commercial facility is available for certain scenarios where security is limited or not preferred, though terms and rates reflect the higher risk profile. The right structure depends on your circumstances, the nature of any available security and what the funds are being used for.

Fixed, Variable and Flexible Structures

Fixed rate commercial loans provide certainty over the loan term - useful when you need to plan debt servicing costs as part of a broader business budget. Variable rate facilities offer flexibility and typically include features like redraw, progressive drawdowns and revolving line of credit structures. A progressive drawdown is particularly valuable for staged projects or developments, releasing funds as work is completed and reducing total interest costs along the way.

Buying Vs Renting Your Premises

For businesses currently renting their premises, purchasing the property they operate from can be a sound long-term financial move. It removes rent escalation risk, provides an appreciating asset within the business, and in many cases can be structured at a cost comparable to or below current rental outgoings when repayments are modelled properly. We work through this analysis with business owners who are considering whether the numbers stack up.

Business owners with both residential and commercial lending should consider how both interact across their total debt position. Equity in a home loan or investment loans can sometimes be used to support a commercial transaction, and thinking through the structure together can produce a better overall result. Book a free consultation with the TAP team to discuss your commercial finance requirements.

Lap 1: Book a Meeting

We start by understanding your business and what you are trying to achieve - whether that is purchasing commercial premises, refinancing an existing facility, or funding a business expansion. This initial conversation is about getting the full picture before recommending anything.

Lap 2: Fact-Finding

We gather the key details about your business, the proposed security property and your financial position - business financials, existing liabilities, details of the property and the purpose of the loan. Commercial lending is assessed differently to residential lending, and the quality of the information at this stage has a direct impact on the application outcome.

Lap 3: Working With You, Not Just For You

Commercial finance is rarely one-size-fits-all. This step is about working through the right structure with you - secured versus unsecured, loan term, rate type, and any features like progressive drawdowns or revolving line of credit that may suit your business situation better than a straightforward term loan.

Lap 4: Loan Recommendation

Based on your business profile, the security property and your borrowing purpose, we identify the most suitable lenders and present a clear recommendation. We walk you through the loan structure, interest rate options, term and repayment details so you can make a fully informed decision.

Lap 5: Document Gathering

Once you have selected a direction, we help you prepare everything the lender requires - business financials, tax returns, property details, lease documentation if applicable, identification and any additional lender requirements. Getting this right upfront avoids delays in the credit assessment process.

Lap 6: Application Lodgement

We submit your application and manage all communication with the lender on your behalf. We keep you informed at every stage and handle any additional information requests from the lender's credit team promptly.

Lap 7: Approval

Commercial applications involve a more detailed credit assessment than residential lending, including review of the business financials, a property valuation and in some cases a review of any tenancy arrangements. We manage this process and make sure all conditions are met before the loan proceeds to settlement.

Lap 8: Document Signing

With approval confirmed, formal loan documents are prepared. We walk you through the terms and conditions so you understand your obligations clearly and can proceed with confidence.

Lap 9: Settlement

On settlement day, funds are released according to the loan purpose - whether for a property purchase, a business acquisition or a refinance discharge. We coordinate with all parties to ensure a clean and timely settlement.

Lap 10: Ongoing Support

We stay in contact after settlement to help you manage your commercial lending as your business evolves. Whether you need a review, a top-up or a restructure, we are ready to assist.