Commercial Loans and Leasing

Finance Allsorts can assist you to find a suitable commercial loan for your next commercial property purchase or refinance and any leasing requirements for cars, plant & equipment.

With a variety of Commercial lenders and leasing firms on our Lending panel, there is bound to be a great deal for you to be found through Finance Allsorts.

Commercial property loans*

  • Loans for Commercial Properties run pretty much as a residential property loan does. The main differences between a commercial property and a residential property are:
    • Usually up to a 15 year term
    • Usually interest only loan
    • You need a larger deposit as most Lenders will lend up to 70% of property value, so you will need 30% plus costs as a deposit
  • Other considerations if purchasing Commercial Property:
    • GST may be applicable on commercial property purchases - check before you commit as you may have to have an additional 10% to pay GST at settlement. Your Accountant can assist more about this.
    • Usually the tenant pays property outgoings, like rates and maintains the property. Any alterations to the property for their business is at their expense after approval by the owner. You need to spell responsibilities out in the lease.
    • Tenant leases are generally longer than residential proeprty leases, often 3 to 5 years with options to renew for several periods ahead eg 3 years x 3 x 3.

Leasing - plant & equipment*

  • Plant & equipment such as business equipment, heavy machinery (trucks, cranes, bulldozers) company cars and other vehicles, factory or industrial machinery and equipment, office equipment, plant equipment etc, can all be purchased with the help of a loan/lease.
  • You can buy them through many methods. Your Accountant can assist with the best set up for you:
    • Chattel mortgage
      • Claim back the GST immediately
    • Commercial High Purchase (Asset purchase)
      • Claim allowable depreciation and interest up front as tax deduction
    • Novated lease
      • An agreement between the Lender, the employer and the employee. The employer is responsible for the lease payments.
    • Standard lease
      • The financier retains ownership of the item until all repayments have been made. The borrower has full use of the item during the repayment term.

Finance Allsorts can assist your with your commercial property loan and leasing requirements.  Phone us on 1300 88 74 85 or 0403 821 024

 

*Please seek independent advice before entering into any contract to purchase any items.