Commercial lending is structured around the security, the entity, the cash flow and the exit. We compare lender appetite across mainstream banks, specialist commercial lenders and private funders to match the deal to the right policy.
Replace these four cards with the scenarios most relevant to this commercial service. Keep the copy specific — not generic marketing.
One or two sentences describing when this scenario comes up and what’s typically needed.
One or two sentences describing when this scenario comes up and what’s typically needed.
One or two sentences describing when this scenario comes up and what’s typically needed.
One or two sentences describing when this scenario comes up and what’s typically needed.
Commercial lenders typically look at one or more of these security types. The combination affects LVR, pricing and which lender tier will actually approve the deal.
Office, retail, industrial, warehouse, medical, hospitality — owner-occupied or investment.
Using residential property as additional security to strengthen a commercial deal.
Equipment, vehicles, plant & machinery, fitout and other business-owned assets.
Used as security for invoice finance and cash flow facilities.
Often used as additional security or to strengthen a low-doc application.
Director, personal or third-party guarantees — commonly requested for company and trust structures.
The entity you borrow through affects tax, asset protection, lender appetite and pricing. We help you align the structure with the lender’s policy.
Simplest structure. Often used by sole traders or individuals purchasing commercial property.
Common for trading businesses and asset-holding entities. Usually requires director guarantees.
Family or unit trusts. Trustee and beneficiary structures must be documented clearly for lenders.
Self-Managed Super Fund. Strict SIS rules apply — limited recourse borrowing, single asset, arms-length terms.
Commercial lending isn’t just about income. Lenders weigh the security, the tenant or use, the borrower’s track record and the exit strategy. Two borrowers with identical income can get different outcomes based on structure alone.
LVR ceilings move materially between lender tiers. Mainstream banks may go to 60–70% LVR on standard commercial property, specialist lenders to 75–80%, private funders higher but at a cost.
Best pricing when LVR is low and cash flow is strong. Strict documentation and serviceability assessment.
More flexible assessment on complex income, vacancy or non-standard security. Higher rates than mainstream.
Speed, flexibility and asset-based decisions. Usually requires a clear exit strategy. Highest cost tier.
Commercial rates are set by the lender, but the borrower and structure move the outcome. Here’s what typically pushes rates up or down.
| Factor | Typical effect on pricing | What to know |
|---|---|---|
| LVR | ↓ Lower is better | Lower LVR means less risk to the lender — usually the biggest lever on rate. |
| Security type | ↔ Mixed | Standard commercial property prices better than specialised assets (hotels, service stations, etc.). |
| Tenant / lease strength | ↓ Strong lease helps | Long WALE with a national tenant prices significantly better than vacant possession. |
| Cash flow strength | ↓ Stronger is better | Interest cover ratio (ICR) and net income are key inputs, especially for owner-occupied. |
| Exit strategy clarity | ↓ Clear exit helps | For bridging and private, lenders price harder when the exit is vague or long-dated. |
| Documentation type | ↑ Low doc costs more | Full-doc pricing is generally the lowest. Low doc and lease doc attract a premium. |
| Term length | ↔ Mixed | Shorter terms can price higher but reduce total interest. Longer terms may have prepayment considerations. |
| Borrower track record | ↓ Experience helps | Experienced developers and borrowers with completed projects often access better terms. |
Every commercial deal is different, but most files for this service will need the following. We’ll confirm the exact list after a short conversation.
Photo ID for all directors, partners or trustees
ABN / ACN and entity registration
Trust deed (if applicable)
Company extract from ASIC
Personal financials for guarantors
2 years tax returns for the entity
2 years P&L and balance sheet
BAS statements — most recent 4 quarters
Management accounts — current YTD
ATO portal or Integrated Client Account
Contract of sale or lease agreement
Valuation — arranged by the lender
Lease documentation for investment property
Rates notice and outgoings schedule
Business plan or development feasibility (if relevant)
We approach the lenders whose policy fits the deal and return indicative terms — rate, fees, LVR, conditions.
Documents reviewed, valuation ordered, entity structure and lease terms confirmed. Sometimes an accountant or solicitor is brought in.
Formal letter of offer issued with final conditions. We manage the lender, valuer and third parties through to formal approval.
Documents signed, funds drawn down and settlement completed. Post-settlement we review covenants and any expiry or review dates.
Add a real, de-identified commercial scenario. Never fabricate numbers or outcomes.
[Business background, property, timing, funding need.]
[Why a straightforward bank approach wasn’t going to work.]
[Entity, lender tier, security and terms chosen.]
[LVR, loan amount, term, rate band — only if compliant.]
[Result achieved. Do not promise similar outcomes.]
Commercial lending terminology and requirements can vary by lender. All answers here are general. A short assessment will confirm what’s achievable for your specific situation.
It depends on the security type, tenant or lease strength, cash flow and the lender tier. Mainstream banks often cap around 60–70% LVR on standard commercial property. Specialist lenders may go to 75–80%, private funders higher. Replace this with the range that applies to this specific service.
For most company and trust structures, lenders will ask directors or trustees to provide guarantees. Personal guarantees may be secured or unsecured depending on the deal. We’ll flag this early so there are no surprises.
Yes, subject to SIS rules. The fund must use a limited recourse borrowing arrangement (LRBA), the asset must be a single acquirable asset, and the transaction must be on arms-length terms. We work with specialist SMSF lenders and can coordinate with your accountant.
Mainstream banks typically take 3–6 weeks from application to formal approval, plus valuation and settlement. Specialist lenders can be faster. Private funders can move within days where the deal is straightforward and security is clean.
For many commercial deals, the broker is paid by the lender through an upfront and trail commission. Some complex, low-doc or private scenarios attract a broker fee, which is always disclosed to you in writing before you proceed.
Free, no-obligation commercial assessment — Australia-wide by phone, video and online.
Family-owned mortgage and commercial finance brokerage. Sydney-based, servicing clients across Australia by phone, video and online.
1300 000 000
commercial@rescomloans.com.au
General information only. Commercial lending terminology and requirements vary by lender. The information on this page does not take into account your objectives, financial situation or needs. Lending criteria, rates, fees and eligibility vary between lenders and may change. Any examples are illustrative only. [INSERT RESCOM’S APPROVED CREDIT / LICENSING DISCLOSURE AND AFCA DETAILS WHERE REQUIRED.]