Commercial Loans
If you’re looking to secure a commercial loan for an acquisition or assessing your refinancing options to consolidate your debts, your search is over - Freshstart Mortgage Solutions has a strong focus on commercial lending and has access to over 25 commercial lending institutions.
Our lenders not only provide traditional lending based on full sets of documentation but lo-doc loans are also available through our panel. Over recent times, Lo-Doc lending has become more freely available with a broader variety of lenders and as such the criteria for obtaining such loans have become less complicated.
Some key requirements of both traditional commercial lending and lo-doc commercial lending are described below:
Traditional Commercial Lending
- Full set of tax returns for the business or company for at least 2 to 3 years
- Verification of liabilities such as existing overdraft facilities, credit cards and other debt which requires a regular repayment
- Providing proof that the acquisition is of a commercial nature
- Be able to demonstrate a sound credit history and the ability to repay the current loans
- Demonstrate stability of residence and employment
Lo-Documentation Commercial Lending
- Income declaration needs to be signed by the applicant and must be true and accurate according to the person declaring the information
- Providing proof that the acquisition is of a commercial nature
- Verification of liabilities such as existing overdraft facilities, credit cards and other debt which requires a regular repayment
- Be able to demonstrate a sound credit history and the ability to repay the current loans
- Demonstrate stability of residence and employment
Other Commercial Lending Parameters
- Loan to valuation ratio varies depending on the lender, the industry standard LVR is up to 70% but can be greater
- The type of securities that are considered for commercial lending are, 1st registered mortgage and property zoned commercial or residential with commercial usage, and there are other securities which may be considered depending on the lender chosen i.e. Freehold residential, motel, rural, Taxi license, term deposits and non-specialised commercial freehold
- Loan term can vary from 1yr interest only to 25yrs variable based on the lender chosen
- Full documentation loans offer very competitive rates whilst Lo-Doc loans generally attract a higher rate as there is limited documentation provided
As outlined above, there are many options open to business people seeking commercial finance. Contact us at Freshstart Mortgage Solutions and we can assist you in obtaining the right finance for your commercial needs by providing you with the appropriate comparisons.
