Shopfront Loan

Commercial Loan for a Shopfront

Looking to expand your business and purchase a shopfront? Mortgage Providers can help!

What can I borrow?

  • If you are purchasing a shopfront commercial property most banks will allow you to borrow up to 80% of the property’s value, or 100% if you add a guarantor to the loan.
  • Some lenders may put limitations in place if you are purchasing the property and also intend to operate your own business from the shop.
  • Many lenders also offer low doc commercial and no doc options.

Am I eligible?

  • Banks will want to see that you have at least 2 years’ relevant industry experience.
  • A business plan that forecast’s the business’s cash flow, how the location will contribute to the business’s success, as well as in depth research into any potential completion.
  • Banks will also want to see what businesses the other tenants within the area are running and whether it is in direct completion of your shop.
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How is the business valued?

Banks will take the approach of valuing the property, any current tenants operating a business out of the property or both; depending on your purpose for purchasing the shopfront.

Lenders will take into account:

If you are buying a property, lenders will consider its size and whether it’s sufficient enough to operate a business from.

The location of the shop and the demographic of the current tenants nearby will be assessed.

The zoning the property certainly influences the way a lender will value the property.

  • If tenants will be running a business from the shop, the lender will want to see their last 2 years’ financials. They will use this information to assess the likely success of the business.
  • If you are buying the property to operate a business in, you will need to show your experience in that field along with a detailed business plan as mentioned above.
  • Where you are buying the property freehold, you will need to show how you will be servicing the loan, so you will need evidence of your income through your last 2 years’ tax returns and notice of Assessments.

If you wold like more information about applying for loan for a shopfront, call us on 1300 656 600 or enquire online and we will be in touch with you.