Business / Commercial Lending

With the majority of media and public attention on residential lending, commercial lending has often been overlooked as a viable `solution for many small to medium business owners.

The Australian economy is built on small business, with more than 2.1 million small to medium businesses operating Australia-wide. History tells us that our nation benefits from a flourishing small business sector. But access to a range of finance options has traditionally been an impediment to growth for many small businesses, primarily due to the restrictive commercial lending practices that have been in place in Australia.

Why is business / commercial lending different?

Unlike residential loans, commercial lending requires a more tailored response with pricing rarely set in stone. Finding the right lender for your commercial purchase requires a great deal of knowledge and understanding of the commercial lending.

Royal Capital offers a suite of commercial lending products with a range of features and options tailored specifically for customers looking to borrow funds for a commercial ventures. Contact Royal Capital to discuss your next (or first) commercial venture.

BUSINESS FINANCE OPTIONS

Royal Capital offers a suite of commercial lending products with a range of features and options tailored specifically for customers looking to borrow funds for a commercial ventures.

Unlike residential loans, commercial lending requires a more tailored response with pricing rarely set in stone. Finding the right lender for your commercial purchase requires a great deal of knowledge and understanding of the commercial lending.

  • How to qualify for a business loan

The process undertaken to secure a commercial loan is a similar process to a residential loan, but the requirements for a commercial lending can be more demanding. When reviewing your application for a commercial property loan, the lender will consider your credit history, the appraised value of the property, your debt service coverage ratio, and how much money you have for a deposit.

To determine your financial credibility, lenders will also look at your income, assets and liabilities. If you plan on occupying the commercial space with your own business, they may request a business plan and other financials of your business.

With assistance from our lending specialists, you can choose a business financing option best suited for your needs and limitations.

  • Business overdraft

Perfect for covering immediate requirements and short-term concerns, with an interest rate lower than that of a credit card and typically no security required

  • Business equity line

Ideal for businesses that occasionally need a cash boost, or for large-scale spending. Security is most likely required for this business finance option.

If you already have an idea of how much you need for additional staff, equipment or renovation, you may opt for either a fixed rate loan or a variable loan.

  • Fixed rate loan

Fixed interest rates and month payments; often higher than market rates. Great for a business with a growing or improving cash flow, especially if it means the possibility of reducing interest by fully paying for the loan sooner.

  • Variable loan

Interest is calculated based on current market rates. These offer greater maneuverability with regard to payment, but also means uncertainty when it comes to upcoming repayment costs. The terms and restrictions of payment may vary depending on your loan provider; some may permit a redraw facility for businesses aiming to access funds without generating a new credit facility, while others may offer penalty-free payments or reductions to interest only payments for a set payment period.

  • Can’t decide? You can also choose a loan option with both fixed and variable components.

Just talk to one of our lending specialists, we’re ready to do the research for you and guide you through the process of securing the best loan option for your business.