Commercial Finance is a multi-faceted field and no two projects are alike. Commercial finance includes commercial offices, industrial factories, retail shops and construction. Kevin and his team of professional partners have spent years learning to balance the various factors involved in each commercial finance situation.
Commercial finance can involve any number of elements from working capital requirements and initial funding of a particular business or enterprise through to accessing the right finance method for purchase of plant and all equipment.
When considering a commercial financing proposal. we take into account the financial requirements of the client and match that to the appropriate lender and facility type. We also consider the current interest rate climate, potential exit strategies and possible complications that may arise in each scenario – all to get the best possible result for every client.
If you’re purchasing, developing or expanding a business, don’t make the mistake of consulting your bank, seek the advice of an independent operative who can assist in structuring your finance proposal and can assist in securing the lowest rates available through your bank or another lender.
Bayside Commercial Mortgages will create a tailored commercial finance solution that will achieve results.
Low Doc Loans
Bayside Commercial Mortgages provides low doc commercial, construction and residential mortgages. Residential loans have different requirements due to the new National Consumer Policy/Act which came into force in July 2010. This policy/Act is enforced by ASIC.
The major change is how lenders are to view residential loans. Prior to 30 June 2010, if the purpose of the loan was for investment or business purposes it did not come under the Act. From 1 July 2010, if you purchase or renovate a residential property and you require a loan to do so, this will now come under the act.
According to ASIC, the purpose of the loan is the main focus of the Act and not the security offered. If the borrower is an individual and requires the money for that purpose, they must be able to prove to the lender (i.e. with up to date financials and tax information) that they can afford to repay the loan.
If the borrower is a company and the purchase of a residential property is in the company name, then it remains outside of the Act.
Under the Act, accredited mortgage brokers and lenders are the only ones who can advise you on your individual lending proposal. Unless licenced, solicitors and accountants will need to refer you to a lender or a licenced mortgage broker for lending advice.
Bayside Commercial Mortgages is an accredited, licenced mortgage broker.
Bayside Commercial Mortgages can assist you to source specialised funding. For example, a building that has been specifically built for a childcare centre, a medical centre, hotel, motel, agriculture etc. These are classified as ‘specialised’.
However there are some specialised buildings such as restaurants where a funder could ask the valuer for an “alternative use” valuation for that property. An “alternative use” valuation means that the property could be converted to say offices and in these cases a specialised building can be financed in the same way as a commercial office or commercial factory.
Specialised securities also include backpacker accommodation, petrol stations, resort style accommodation and wedding reception venues.
Funding for specialised properties predominantly hotels and motels (leasehold and freehold) can be financed to 65% of the real estate value or around 65% of the combined real estate value, business component and any liquor and/or poker machine licenses.
For the specific risk margin on your loan product don’t hesitate to contact us for a quote.