COMMERCIAL PROPERTY REFINANCE
What is Commercial Property Refinance?
Commercial Property Refinance refers to a new loan taken out to replace an existing commercial property loan. A refinance loan allows you to take advantage of better loan terms and lower interest rates. Another thing you can do with commercial property refinancing is borrow cash against the equity of your business property.
If you have a large commercial property loan payment coming due and you don’t have the money, your best option is refinancing. On the other hand, if your property has gained enough equity, you may opt for a cash-out. This money can be used to pay for repairs and improvements to your business property.
So consider your business long-term business goals. This will help you choose a refinancing option that best matches your needs and your financial situation.
Be ready to present your business plans. Your lender would want to know how or where the money will be used, and whether you are capable of repaying the loan.
So prepare all the documents you need to prove that you are creditworthy. These include projected cashflow, balance sheets, tax returns and profit and loss statements.
Also, know the current valuation of your commercial property. It may have changed significantly from the time of the original loan was taken out. Another thing to consider is whether to strike a refinancing deal with your current lender or approach a competing lender. Either of these has its pros and cons.
If all this information sound too unfamiliar to you, your best move would be to get expert advice from an experienced commercial loan broker.
Benefits of an Approved Commercial Property Refinance
Commercial property refinancing is a complex process. But, once you are approved for a commercial property refinance, you begin to reap tremendous benefits. Here are some of the most important ones:
- Lower monthly repayment
- Reduced interest rates
- Pay off the loan faster
- Cash out your equity
- Consolidate your debts
The reduction of monthly payments and interest rates often go hand in hand, but not always. Either way, refinancing helps you to take charge of your current situation by allowing you a better chance to fulfil your obligations, uphold your reputation and best of all, improve your credit score.
Refinancing is a competitive market. Many lenders may offer you attractive rates or better terms in order to earn your business. This could result in big savings for you particularly if there’s been changes in your financial situation since taking out the original loan.
If your original lender charges a fee for early loan repayment, here’s a way out for you. By refinancing your commercial property loan, you can enjoy the option of paying off your debt early. This is particularly advantageous if you are now generating significantly more income than before.
Another important benefit of commercial property refinancing is it allows you to consolidate your other debts into one easy repayment scheme.
So if you’re thinking of refinancing your commercial property loan, come to Commercial Loans.
We will link you with Australia’s top commercial loan brokers, where you can get your loan approved faster and at better terms.
Get started on the path to your loan approval. Call us today!
There are many reasons to consider refinancing your commercial loan but whatever your reason we’ve got you covered! At Commercial Loans we will connect you with one of Australia’s top commercial loan Brokers who will assist you in obtaining a finance approval at a highly competitive rate.
Whether it’s to free up capital to acquire new plant and equipment, fund the deposit to purchase other commercial or residential real estate or simply to reduce your interest rate to improve business cash flow, our brokers understand the requirements of Australian business and can tailor a solution to meet your needs large or small.
Some of the solutions we offer are:
- Lending up to 80% of the property’s value or 100% with additional security
- Create working capital
- Expand operations
- Purchasing new machinery or equipment
- Purchase of real estate, both commercial and residential
- Leasehold Improvements
- Speak directly with one of Australia’s top commercial loan brokers by clicking on “Get a Quote” below