The Commercial Property Finance that we arrange is typically associated with the purchase of major assets such as land, buildings and sometimes equipment. These items are a significant expense and it is important that you get the right structure of fixed and floating interest rates & repayment terms, as the interest component will have a major bearing on your Profit and Loss Statement.
We can deal with all the Banks and they do like to "cherry pick" only the best deals to write. This is due to the fact that we are still in tough times and they already have their fair share of impaired loans to manage without adding more to their book. Commercial Property Finance loans through a bank will often be on a principal and interest basis, which means repayments will have a greater impact on your cashflow than an interest only facility. Also unlike a Home Loan, which can have a term of up to 30 years, a commercial loan will often be at a term of 15 years or less.
Another significant cost to your business can be the monthly lease plus OPEX costs on your commercial premises. We are finding that in some cases that it is cheaper for a business owner to buy their own premises and instead of paying off the landlords mortgage they are paying off their own building. The building can often be owned by a Trust creating an income producing asset for later years and you must seek advice on this from both your Accountant and Solicitor.
Lending beyond 65%? Yes, if you have a strong business with good profits that can be demonstrated over say the last 3 years Commercial Building Finance may be available beyond the accepted level of 65%. The Bank would be looking to have a First Mortgage, plus a charge over your business which can include debtors, stock, plant and machinery. If you are buying as an investor, or perhaps it is a startup business, your loan will be at say 65% of the registered valuation or purchase price, unless you have collateral security for the Bank, such as your home, but this does create an additional risk for you. Non Bank lenders may be happy at up to 75% on a standalone basis and you can discuss this with us.
With property developers and investors now returning to the commercial market we can help with loans for the construction of commercial and residential investments, land subdivisions & retail premises.
If you have been to your Bank and they have declined your application or made it all just too hard, we have a dedicated website with further infomation, NonBk Ltd, Non Bank Home Loans Mortgages and Finance, www.nonbank.co.nz, which may be the answer you are looking for.
Contact us for more information
or Freephone 0800 178 726