COMMERCIAL LENDING

Commercial finance requires a different approach

Commercial lending can be significantly different from residential finance.

The lender may need to understand not only the property being offered as security but also the business, borrower structure, historical financial performance, lease arrangements, guarantors, existing debt and the purpose of the transaction.

That is where experience matters.

With a background in banking and commercial lending, BWM Finance understands how to work through the moving parts of a commercial transaction and present a lending request clearly.

  • We can assist business owners and investors with the purchase or refinance of commercial property, subject to lender policy and the characteristics of the transaction.

    This can include:

    • Office property

    • Retail property

    • Industrial property

    • Warehouses

    • Business premises

    • Commercial investment property

    Commercial lenders can have very different appetites for property types, locations, industries and borrower structures.

    Understanding those differences before approaching a lender can save considerable time.

  • For some business owners, purchasing the premises their business operates from can form part of their longer-term business plans.

    Commercial property finance may be available to assist with acquiring business premises, subject to the borrower's financial position, property, structure and lender requirements.

    We can work with the business owner and their accountant to understand the transaction and determine which lenders may have an appetite for it.

  • Commercial property investors face a different set of lending considerations from residential investors.

    Lenders may consider the property's location and type, lease terms, tenant profile, loan-to-value ratio, interest cover and borrower financial position.

    We help investors understand these requirements and identify lenders whose commercial property appetite is aligned with the proposed transaction.

  • This is an area where BWM Finance particularly enjoys working.

    Commercial transactions can involve:

    • Multiple companies and trusts

    • Related entities

    • Intercompany loans

    • Multiple guarantors

    • Several properties

    • Business and investment debt

    • Self-managed super funds

    • Complex income structures

    These transactions often require more than simply completing an application form.

    The lender needs to understand the transaction.

    We work through the structure, financial information and lending request and, where appropriate, coordinate with accountants, solicitors, valuers and lender relationship teams.

    The objective is to tell the story behind the numbers clearly and give the lender the information it needs to properly assess the transaction.

  • Businesses change.

    A lending arrangement that suited a business several years ago may no longer suit its current position.

    Commercial refinancing can involve reviewing existing property debt, business facilities, loan terms, security structures and lender arrangements.

    We can assess the existing position and investigate whether alternative lenders or structures may better align with the business's current requirements.

  • Access to capital can be important when a business is growing, investing or managing changes in working capital.

    Depending on the circumstances and available lender products, commercial lending solutions may be available for eligible business purposes.

    The appropriate structure depends on the purpose of the funds, financial performance, available security and the business's ability to service the proposed debt.