What is a commercial loan?

A commercial mortgage is a mortgage loan secured by commercial property, such as an office building, shopping centre, industrial warehouse or apartment complex. The proceeds from a commercial mortgage are typically used to acquire, refinance or redevelop commercial property. Also a commercial loan is a debt-based funding arrangement that a business can set up with a financial institution. The proceeds of commercial loans may be used to fund large capital expenditures and/or operations that a business may otherwise be unable to afford.

Short term Commercial loan

Short term commercial loans are no longer than a 12 month period or as short as one month.

Settlements can occur within 3 – 5 Days.

Intermediate term commercial loan

Intermediate term commercial loans usually have a term to maturity of 1 – 3 years.

Settlements can occur within 3 – 5 Days.

Prime Finance commercial loan product guides

1. Loans up to 1.5 million dollars

2. LVR up to 80% of as is value (terms and conditions apply)

3. Commercial loan rate is 1% per month

4. Loan term is 1 month to 3 years

Prime Finance acceptable commercial loan securities

·         Residential properties in metropolitan areas

·         Rural / Residential properties (population over 50,000)

·         Commercial properties

·         Industrial properties

·         Vacant Land (in metropolitan areas only, LVR up to 75%)

          Development sites (subject to terms and conditions)