Commercial private mortgages in Sydney
Short-term commercial private mortgages in Sydney for businesses refinancing, clearing tax debt or buying property, and the kinds of Sydney commercial deals we see.
A commercial private mortgage is a short-term loan secured by a shop, office, industrial unit or other commercial property, and in Sydney we mostly see them used by business owners who need to refinance quickly, pay down a tax debt, or buy before a bank can finish its assessment. It's not meant to be forever. It's meant to get the business through a specific problem and back to a bank or a cheaper lender.
We lend $1M to $20M on Sydney commercial property, for business and investment purposes, over 6 to 36 months, and we normally settle in 5 to 10 business days once the valuation is in.
Sydney commercial deals we've looked at
The examples below are based on real enquiries, but the numbers and details have been changed so none of them can be identified.
A retail property and a tax debt. A business owner wanted to refinance the existing loan on a retail property and pay down a tax debt, while also selling another property to help. They wanted to pay interest monthly, but at the LVR they needed we recommended capitalising it, so a quiet trading month couldn't put the loan in arrears.
Strata units that didn't clear the payout. A borrower wanted to refinance a couple of commercial strata units and fund works on another property. Once capitalised interest and fees were included, the maximum loan didn't cover the existing payout, so the deal needed more security or cash from the borrower, and it didn't proceed.
An urgent refinance across several properties. A business needed to refinance quickly ahead of a planned move to a bank or another lender. The first thing we asked for was evidence of that refinance and its timing, because on a short loan the exit is everything.
What Sydney commercial lenders check first
- Does the loan clear the payout? After interest and fees, not before.
- Is the value supported? Comparable sales and, for tenanted property, the lease and the rent.
- What's the tax position? The amount, any payment plan and whether it's in default.
- How will it be repaid? A bank, a sale or a lease that's about to be signed, with some evidence.
- Do the entities line up? The borrower, the property owner and the guarantors.
Serviced or capitalised interest on commercial property
A lot of Sydney commercial borrowers want to pay interest monthly because the business can afford it, and sometimes that's right. But if the rent from a single tenancy doesn't cover the interest, or the business is dealing with a tax debt, capitalising the interest removes the risk of arrears during the term. We'll talk it through with you and set it up whichever way makes the loan safer.
Frequently asked questions
Can a private lender refinance my commercial property if I have a tax debt?
Yes, if the property supports the loan and there's a realistic way out. Clearing the tax debt is often the reason for the loan.
Do you lend on vacant commercial property?
It depends on the property and the location. The valuation will reflect the vacancy, so the loan is usually lower than it would be with a tenant in place.
Do I need a valuation before you'll give terms?
No. We can give indicative terms on an estimate, and the final loan is confirmed once the valuation is in.