If you're looking to expand your business operations in Templestowe or surrounding areas, purchasing an industrial estate could be the perfect next step. Industrial properties offer excellent opportunities for manufacturing, warehousing, distribution, and various other business activities. However, securing the right commercial finance can feel overwhelming with so many options available.
At Premier Path Finance, we help businesses access Commercial Loan options from banks and lenders across Australia, making it easier to find the right funding solution for your industrial property purchase.
Understanding Commercial Property Finance for Industrial Estates
Buying commercial property, particularly industrial real estate, requires substantial capital investment. Most businesses don't have the full purchase price available in cash, which is where commercial finance becomes essential. Industrial properties typically range from hundreds of thousands to several million dollars, depending on size, location, and facilities.
Commercial loans for industrial properties work differently from residential mortgages. Lenders evaluate your business's financial health, cash flow, and the property's income-generating potential when determining your loan amount and interest rate.
Types of Commercial Loans for Industrial Property
When buying an industrial property, you'll encounter various loan structures designed to meet different business needs:
• Secured Commercial Loan: Uses the industrial property as collateral, typically offering lower interest rates
• Variable interest rate loans: Rates fluctuate with market conditions, often starting lower than fixed rates
• Fixed interest rate loans: Provide certainty with consistent repayments throughout the fixed period
• Progressive drawdown: Perfect for industrial developments or renovations, releasing funds as work progresses
• Revolving line of credit: Offers flexibility to draw and repay funds as needed
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Premier Path Finance today.
Key Factors Lenders Consider
When applying for a commercial loan to buy commercial land or industrial property, lenders assess several crucial factors:
- Business financial performance: Profit and loss statements, cash flow projections, and trading history
- Property valuation: Independent assessment of the industrial estate's current market value
- Loan-to-value ratio: Most lenders require 20-30% deposit for industrial properties
- Business experience: Your track record in managing commercial properties or industrial operations
- Exit strategy: How you plan to service the loan through rental income or business operations
Flexible Loan Terms and Repayment Options
Modern commercial finance offers flexible loan terms tailored to your business cycle and cash flow patterns. Many lenders provide:
• Flexible repayment options including interest-only periods during establishment phases
• Loan terms ranging from 5 to 30 years depending on your business needs
• Redraw facilities allowing access to extra payments made on your loan
• Seasonal payment variations for businesses with fluctuating income
These features can be particularly valuable when expanding business operations into new industrial facilities, as they provide breathing room during the transition period.
The Application Process Made Manageable
Applying for a commercial loan doesn't have to be overwhelming. A streamlined application process typically involves:
- Initial consultation: Discussing your industrial property goals and financial situation
- Document preparation: Gathering financial statements, business plans, and property information
- Lender comparison: Reviewing options from multiple banks and specialist commercial lenders
- Application submission: Presenting your case to selected lenders
- Settlement coordination: Managing the final steps to secure your industrial estate
Why Industrial Properties Make Sound Investments
Buying an industrial property offers several advantages for growing businesses:
• Asset ownership: Building equity instead of paying rent to landlords
• Operational control: Modifying facilities to suit your specific business needs
• Tax benefits: Depreciation and interest deductions can reduce your tax liability
• Rental income potential: Leasing unused space to other businesses
• Capital growth: Industrial properties often appreciate over time
Beyond Property Purchase
Commercial finance isn't limited to property acquisition. Many businesses use their industrial property equity for:
• Buying new equipment for manufacturing or processing
• Upgrading existing equipment to improve productivity
• Expanding business operations into new market segments
• Working capital to support increased production capacity
An unsecured Commercial Loan might be suitable for equipment purchases, while secured loans work well for major facility improvements.
Purchasing an industrial estate represents a significant milestone in your business journey. With proper planning and the right commercial finance partner, you can secure funding that supports your long-term growth objectives while maintaining healthy cash flow.
Call one of our team or book an appointment at a time that works for you to discuss your industrial property financing options.
