Commercial lending is specialist territory. Whether you’re buying your own business premises, expanding into a new location, or investing in commercial property, the right finance structure makes a real difference to your business cash flow and tax position.
Owner-occupier vs investment
Owner-occupier means you’ll run your business from the property you’re buying. Lenders typically offer better terms for owner-occupier because the risk is lower — you have a vested interest in keeping the property.
Investment means you’re buying the property to lease to another business. The lender will assess the lease income, the strength of the tenant, and the property’s marketability.
Term loans vs amortised loans
Commercial loans come in two main structures:
- Term loans (interest-only): you pay interest regularly and repay the principal at the end of the term. This keeps repayments lower but requires a plan to repay the lump sum.
- Amortised loans: you pay off principal and interest over time, similar to a home loan. Your debt reduces steadily.
The right structure depends on your cash flow, tax position, and long-term plans. We’ll help you understand the trade-offs — and we always recommend talking to your accountant about the tax implications.
What lenders look at
- Your business financials (typically 2 years of tax returns and financial statements)
- The property type, condition, and location
- Lease details (if it’s an investment — lease term, tenant strength, rent)
- Your business trading history and industry
- Your personal financial position
Commercial lending criteria are more complex than residential. We package your application to present your business in the strongest possible light across 90+ lenders.
Book a free chat with James to discuss your commercial finance needs.
General information only. Talk to James for advice tailored to your situation.