Strategic Business & Property Finance Solutions
Commercial Finance Tailored To Your Business Goals
Securing commercial finance is about far more than simply finding a lender with a competitive interest rate. Commercial lenders assess the strength of your business, cash flow, structure, assets, industry, management capability and long-term strategy before making lending decisions.
At Advanced Finance Group, we combine commercial finance expertise with Chartered Accountant-level financial analysis to help business owners, investors and developers present their applications in the strongest possible light.
Whether you are purchasing commercial property, acquiring a business, refinancing existing debt, funding growth, or investing through trusts and company structures, we help navigate the increasingly complex commercial lending environment.
What Is Commercial Lending?
Commercial lending refers to finance provided to businesses, investors and commercial entities for business purposes.
Commercial loans can be used for:
- Commercial property purchases
- Business acquisitions
- Business expansion
- Working capital requirements
- Equipment and asset purchases
- Property development
- Cash flow management
- Debt consolidation and refinancing
- Franchise purchases
- Professional practice acquisitions
Unlike residential lending, commercial finance is often individually assessed and tailored to the specific circumstances of the borrower.
Commercial Property Finance
Commercial property remains one of the most common forms of commercial lending in Australia.
Properties may include:
- Office buildings
- Warehouses
- Industrial facilities
- Medical centres
- Retail premises
- Childcare centres
- Hospitality venues
- Mixed-use developments
- Storage facilities
- Specialized commercial assets
Commercial property finance can be structured for both owner-occupied and investment purposes.
Owner-Occupied Commercial Property
Businesses purchasing their own premises can benefit from:
- Greater control over occupancy costs
- Potential long-term capital growth
- Asset accumulation within the business structure
- Improved business stability
Commercial Investment Property
Investors may acquire commercial assets to generate rental income and long-term capital growth.
Lenders typically assess:
- Lease strength
- Tenant quality
- Lease term remaining
- Property location
- Property marketability
- Rental yields
Business Structures Used For Commercial Lending
One of the most important components of any commercial finance application is selecting the appropriate borrowing structure.
Commercial finance can be arranged through:
Individual Ownership
Suitable for certain property investments and smaller commercial transactions.
Benefits may include:
- Simplicity
- Lower establishment costs
- Straightforward ownership structure
Company Borrowers
Companies are commonly used for:
- Trading businesses
- Asset protection strategies
- Business acquisitions
- Commercial property ownership
Lenders will generally assess both the company and its directors.
Family Trusts
Trust structures are commonly used by investors and business owners seeking:
- Asset protection
- Succession planning
- Income distribution flexibility
Commercial lenders often require personal guarantees from directors or beneficiaries.
Unit Trusts
Unit trusts are frequently used where multiple investors participate in a commercial property or business investment.
Self-Managed Super Funds (SMSFs)
SMSFs may acquire eligible commercial property through Limited Recourse Borrowing Arrangements (LRBAs), particularly where business owners wish to purchase their own commercial premises through superannuation.
Complex Group Structures
Many commercial borrowers operate through:
- Multiple companies
- Trust structures
- Holding entities
- Property entities
- Trading entities
Understanding how these entities interact is critical to presenting a successful lending application.
Commercial Lending Security Types
Commercial lenders can accept a variety of security options depending on the transaction.
Commercial Property Security
The most common security type, including:
- Offices
- Retail properties
- Warehouses
- Industrial assets
Residential Property Security
Many business owners leverage residential property equity to strengthen commercial lending applications.
Business Security
Additional security may include:
- Business assets
- Plant and equipment
- Debtors
- Inventory
- Director guarantees
Cash Security
Certain lenders may accept term deposits or cash-backed facilities.
Multi-Security Structures
Complex commercial transactions often involve multiple properties or asset classes supporting a single lending facility.
How Commercial Lenders Assess Borrowing Capacity
Commercial lending is significantly different from residential lending.
Each lender has its own credit policy and risk appetite.
Common areas assessed include:
Business Financial Performance
Lenders generally review:
- Profit and Loss Statements
- Balance Sheets
- Tax Returns
- BAS Statements
- Management Accounts
Cash Flow
Strong cash flow remains one of the most important lending considerations.
Lenders want confidence that debt obligations can be comfortably serviced.
Existing Debt Position
Current liabilities, loan facilities and contingent liabilities are carefully reviewed.
Industry Risk
Some industries attract more favourable lending treatment than others due to perceived risk profiles.
Director Experience
Management capability and industry experience can significantly influence lending outcomes.
Asset Position
Net asset strength often improves a lender’s confidence in the overall application.
Common Commercial Lending Scenarios
Business Acquisition Finance
Purchasing an established business often requires specialist lending analysis including:
- Historical profitability
- Goodwill valuation
- Cash flow forecasting
- Industry benchmarking
Working Capital Finance
Designed to support:
- Growth initiatives
- Seasonal fluctuations
- Inventory purchases
- Debtor funding
Equipment & Asset Finance
Funding solutions are available for:
- Vehicles
- Machinery
- Manufacturing equipment
- Technology infrastructure
- Medical equipment
Development Finance
Property developers may require finance for:
- Residential developments
- Commercial developments
- Subdivisions
- Construction projects
Development finance typically requires specialist lender assessment and detailed feasibility analysis.
Typical Commercial Lending Terms
While every lender and transaction differs, commercial lending commonly includes:
- Loan terms from 1 to 30 years
- Variable and fixed interest rate options
- Interest Only and Principal & Interest repayments
- Loan-to-Value Ratios (LVRs) generally ranging between 50% and 80%
- Annual reviews for certain commercial facilities
- Flexible repayment structures
- Line of Credit facilities
- Revolving credit facilities
The final lending terms depend on:
- Security quality
- Industry profile
- Borrower strength
- Cash flow position
- Overall transaction risk
Why A Chartered Accountant Makes A Difference
Many finance brokers focus solely on matching borrowers with lenders.
At Advanced Finance Group, we take a fundamentally different approach.
As a Chartered Accountant and Commercial Finance Specialist, Andre Barkhuizen understands how lenders analyse financial statements, assess risk and make credit decisions.
This allows us to:
Present Your Financial Position Effectively
We help ensure your financial information is presented clearly and accurately to maximise lender confidence.
Identify Potential Lending Issues Early
Many applications fail because issues are discovered too late in the process.
Our accounting expertise allows us to identify concerns before the application reaches credit assessment.
Improve Serviceability Outcomes
Understanding lender servicing methodologies allows us to structure applications more strategically and maximise borrowing capacity where appropriate.
Assist With Complex Structures
Trusts, companies, SMSFs and group structures require specialised knowledge.
We work with business owners, accountants and legal advisers to ensure lending structures align with commercial objectives.
Speak The Language Of Credit Assessors
Commercial lenders analyse financial statements differently from most borrowers.
As a Chartered Accountant, Andre can communicate directly with credit teams using the financial metrics and lending considerations that matter most.
Why Choose Advanced Finance Group?
We provide tailored finance solutions across:
- Commercial Property Finance
- Business Lending
- Commercial Refinancing
- Development Finance
- Equipment Finance
- Working Capital Facilities
- SMSF Commercial Property Loans
- Complex Trust & Company Structures
Our objective is simple:
To position your application for the highest probability of approval while securing competitive lending terms that support your long-term business success.
Speak With A Commercial Lending Specialist
Whether you are purchasing commercial property, expanding your business, acquiring a new enterprise or refinancing existing facilities, Advanced Finance Group can help structure a finance solution tailored to your objectives.
Contact Advanced Finance Group today to discuss your commercial lending requirements and discover how Chartered Accountant expertise can improve your lending outcomes.
Further Reading:
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