Industrial Property

Commercial Loan for an Industrial Property

What can I borrow?

  • Where you are buying an industrial freehold property your loan to value ratio is limited to 81% of the value of the property, unless you offer a guarantor or offer residential security, which increases your LVR to 100%of the value of the property.
  • Loan terms are limited to a maximum of 25 years.
  • Some lenders will allow you to borrow under a low doc loan

Different LVR for Industrial property loan?

The LVR for industrial property loans can vary from lender to lender. We can get the following LVR for stand-alone security using industrial property

  • 85% LVR
  • 80% LVR
  • 75% LVR
  • 70% LVR
  • 65% LVR
I Stock 154951973

Am I eligible?

  • You will need to show that the proposed income will be enough to cover the interest expenses on the loan by at least 1.00 to 1.5 times.
  • You’ll need to give evidence that you can service the loan (where you are purchasing freehold), by showing that have a strong financial position and stable income
  • Where you are purchasing the property to operate your business from, you will need to show Business activity statements, tax portal printouts and bank statements for all your business accounts.
  • You will also need to a business plan detailing your forecast of the business’ cash-flow whilst addressing location choice and business competition

How do banks value the property?

How do banks assess the business?

  • Banks will consider your overall financial position (that is your assets compared to debts).
  • Banks will also look at how much experience you have managing a similar sized business.

What security can I use?

Depending on whether you are purchasing the warehouse for development purposes you can provide:

  • Registered mortgage
  • General Security Agreement or GSA
  • Guarantees from the directors
  • Rights over intellectual property

For a free assessment enquire online today or call us on 1300 656 600 .

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