Commercial Loans
Making business and commercial finance decisions is easy when you receive the right advice from Our team.
The term of a commercial loans
The term of a commercial loan is generally determined by the type of security offered to the bank
- 30-year term: Available only when residential property is used as security.
- 20–25-year term: Offered by selected lenders when commercial property is used as security.
- 15-year term: The most common term for loans secured by commercial property.
- 5–7 year term: Typical terms for financing commercial equipment or machinery.
- Shorter terms: Used for short-term business loans, invoice discounting, and development loans.
The security provided for a commercial loan plays a crucial role in determining the terms of the loan and interest rates. Commercial property is often used as security, but lenders may also consider other business assets as additional security.
Interest rates for commercial loans in Australia can vary based on the lender, loan amount, loan term, and the security offered. Both fixed and variable interest rate options are available, allowing businesses to select the best option for their financial needs.
In addition to the loan itself, commercial borrowers in Australia may also have access to additional facilities such as overdrafts. An overdraft allows businesses to borrow more money than what is currently in their account, providing added financial flexibility.
When taking out a commercial loan, other supplementary facilities that may be considered include:
- Business lines of credit
- Trade finance
- Equipment finance
- Invoice financing
These additional facilities can help manage cash flow, finance equipment purchases, or support trade operations, offering comprehensive financial solutions tailored to your business requirements.
For personalised advice and more information on Commercial Loan, contact the team at GoEazy Finance.