Commercial Loans for Australian Businesses

Whether you are buying commercial property, expanding your business, or refinancing an existing facility, Lexor Finance works with clients in Truganina, Victoria and across Australia to find commercial loan options that suit your circumstances.

What Are Commercial Loans?

Commercial loans are a broad category of finance used to purchase, develop, or refinance income-producing or business-use properties and assets. Unlike residential lending, commercial finance involves a more complex assessment process, taking into account the nature of the property, the strength of the business, and the loan structure being proposed. At Lexor Finance, we help clients understand their options and connect them with lenders who are suited to their specific situation.

Commercial loans can be used for a wide range of purposes, including buying an office building, financing a warehouse, purchasing an industrial property, acquiring retail space, or funding land acquisition. They can also support commercial construction loan requirements, where funds are drawn progressively as a build progresses through a progressive drawdown arrangement. This type of facility is particularly useful for developers and business owners who need staged access to funds rather than a lump sum at settlement.

Types of Commercial Finance We Can Help With

Lexor Finance can assist clients in accessing a range of commercial finance products. A secured commercial loan uses collateral, typically the property being purchased, to support the lending application. This is the most common structure for commercial property loans, including strata title commercial purchases and industrial property loans. An unsecured commercial loan, by contrast, does not require property as security, though these facilities typically come with different commercial interest rates and conditions.

For clients who need short-term access to funds while waiting for a longer-term facility to settle, commercial bridging finance can be a practical option. This type of lending bridges the gap between the purchase of a new property and the sale or refinancing of an existing one. Similarly, pre-settlement finance may be available to help clients manage timing differences in complex transactions.

For larger-scale projects, commercial development finance and mezzanine financing are options worth exploring. Mezzanine financing sits between senior debt and equity in the capital structure, and is often used when the primary commercial mortgage does not cover the full funding requirement. Lexor Finance can help clients understand how these structures work and whether they may be appropriate for their situation.

A revolving line of credit is another facility that some commercial borrowers find useful, particularly where cash flow needs fluctuate over time. This type of arrangement allows borrowers to draw down, repay, and redraw funds up to an approved limit, offering flexible repayment options that suit businesses with variable income.

Key Considerations in Commercial Lending

One of the most important factors in any commercial loan application is the commercial LVR, or loan-to-value ratio. Lenders assess how much they are willing to lend relative to the commercial property valuation, and this ratio can vary significantly depending on the property type, location, and the borrower's financial position. Understanding where you stand in relation to LVR requirements is an important part of preparing a strong application.

Interest rate structures are another key consideration. Borrowers can generally choose between a variable interest rate, which moves with market conditions, and a fixed interest rate, which locks in repayments for a set period. Some lenders also offer split arrangements. Lexor Finance helps clients understand the implications of each structure so they can make informed decisions that suit their cash flow and risk profile.

Flexible loan terms are often available in commercial lending, and the right loan amount and structure will depend on the purpose of the finance, the type of property involved, and the overall financial position of the borrower. Whether you are looking at retail property finance, business property finance, or commercial real estate financing for an investment portfolio, the structure of your loan matters as much as the rate.

For clients who already hold a commercial facility, commercial refinance may be worth considering. Refinancing can allow borrowers to access improved terms, consolidate debt, or release equity from existing properties. Lexor Finance works with clients to review their current arrangements and identify whether refinancing could be beneficial.

If your business is buying new equipment or upgrading existing equipment as part of a broader growth strategy, you may also want to explore our asset finance and equipment finance services, which sit alongside commercial lending as part of a complete business finance solution. For businesses looking at broader funding needs, our business loans and working capital pages provide further information on the options available.

At Lexor Finance, we are a family-run commercial Finance and Mortgage Broker with deep industry knowledge and a genuine commitment to our clients. We take the time to understand your goals and work with a broad panel of banks and lenders to access commercial loan options that are suited to your needs. If you are considering commercial property investment or need finance for an expanding business, we are here to help you find a path forward.

Step 1: Initial Conversation
We start with a simple chat to get to know you and understand what you are looking for. Whether you are buying a home, investing in property, or looking for a business loan, this is your chance to ask questions and share your goals. There is no obligation and no pressure.

Step 2: Understanding Your Situation
Next, we take a closer look at your financial position. We will ask about your income, expenses, assets, and any existing debts. This helps us build a clear picture of where you stand and what options are available to you.

Step 3: Researching Your Options
With access to a wide panel of lenders, we do the legwork for you. We compare loan products, interest rates, fees, and features to find solutions that suit your needs and goals - not just the first option that comes along.

Step 4: Presenting Our Recommendation
We present you with a clear recommendation and explain why it is the right fit for your situation. We walk you through the numbers in plain language so you can make a confident, informed decision.

Step 5: Preparing Your Application
Once you are happy to move forward, we prepare your application and gather the required documents. We handle the details carefully to give your application the best possible chance of approval.

Step 6: Lodging and Managing Your Application
We submit your application to the lender and stay on top of the process from there. We liaise with the lender on your behalf, respond to any requests quickly, and keep you updated every step of the way.

Step 7: Settlement and Beyond
Once your loan is approved and settled, our job is not done. We check in with you regularly to make sure your loan is still working for you. As your circumstances change, we are here to review your options and help you stay on track.