Commercial loans, Business loans and equipment finance need special consideration.

September 12, 2017
Annette Kennedy

Now that the financial year is behind us, it is a great time for business owners to look at the year ahead.  Will 2017/2018 be your year to expand, purchase your own commercial property or that new piece of equipment that will allow you to grow your business to the next level?

Commercial loans, business loans or equipment finance is an area of lending that is often assessed on a case by case basis by lenders.

As such it is difficult to find great general advice as whatever you read may not apply to your individual situation.

  • Commercial property loans are usually secured by commercial or residential property and equipment loans by the equipment being purchased but there are instances where smaller business loans can be part secured and part unsecured.
  •  The deposit required can range from 0% to as high as 30% depending on the amount being borrowed and the security being offered – property usually requires a bigger deposit whereas equipment can be financed with zero deposit.
  • Different facilities within your loan will make your loan a better fit for your business, for example an overdraft facility, or commercial bill facility, interest only option.
  • Business loan products are varied – Term loans, Forward Start Loans, Leasing Finance, Debtor finance, Trade finance to name a few.
  • The term of the business loan can also vary from a short to long term


This is why talking to a mortgage broker when you first start planning the growth of your business will give you the knowledge to plan the best way forward.  And how the repayments will fit into your budget in the years ahead.

Each lender will have their business loan advisor who will be able to tell you the best product that they have available. 

When using a mortgage broker they will go into bat for you with all the lenders on their panel.  They know what the other banks and lending institutions are offering and therefore are better situated to negotiate on your behalf.


If you would like to find out more contact John Kennedy mortgage specialist at Mortgage Choice in Mudgeeraba on the Gold Coast today on 5559 2563 or drop him an email .  Let’s discuss your options as to what may work to see your business expand.

Posted in: Business lending

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