Business Property
Business Property Loans Explained
5 min read- Finance Guide
- Updated 2026
Quick answer
Property-backed loans for
Business Premises
Longer term and property secured — different from unsecured working capital loans
- Minimum loan size From $250,000
- Loan term range Up to 30 years
- Repayment types P&I or interest only
- Borrower types Company, trust, partnership
1300 421 044
1300 421 044
Detailed explanation
A business property loan allows a company, trust, partnership or business owner to buy premises instead of leasing them. The lender funds the purchase, registers security over the property, and the borrower repays the debt over time under a commercial or business lending structure.
Core parts of a business property loan
The structure usually includes:
Loan amount based on purchase price or valuation
Deposit or equity contribution from the borrower
Security over the property — may also accept additional security
Repayment type such as principal and interest or interest only
Commercial interest rate structure — variable or fixed options available
Legal, valuation and establishment costs
Flexible Product Features
Major lenders highlight flexible repayment options, redraw in some cases, and tailored arrangements for business borrowers — including combinations of security types.
How lenders assess the deal
-
01. Business financial statementsBusiness strength
-
02. Tax returns and BAS where relevantIncome evidence
-
03. Existing liabilitiesDebt position
-
04. Directors or guarantorsPersonal strength
-
05. Property valuation and typeSecurity quality
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06. Lease details if tenants are involvedRental income
-
07. Deposit size and resulting LVREquity position
-
08. Overall strength and stability of the businessKey factor
Flexible Product Features
Major lenders highlight flexible repayment options, redraw in some cases, and tailored arrangements for business borrowers — including combinations of security types.
Why Businesses use property loans
Businesses commonly use these loans to:
Gain control over occupancy costs- Secure long term premises
- Build equity in a property asset
- Fund expansion into larger premises
- Combine purchase and fitout needs in a secured lending structure
ATO — Deductible Interest
The ATO states that when commercial property is used for business purposes, expenses associated with owning it can include deductible interest on the purchase loan — a major commercial consideration for owner occupiers.
Terms, minimums and practical ranges
Business property loans do not have one standard national rule set. Instead, lenders publish product level settings and then assess each deal against their own policy.
NAB minimum
$250K
Some commercial lending products
NAB terms
30d–15 Year
Certain commercial loan products
ANZ secured (under $5M)
30 Year
Where policy and security allows
Market Note
These examples show the practical range of the market — the exact term, size and structure depend on property type, security, borrower strength and lender appetite. Policy varies significantly between lenders.
Need Help with your Project?
Common problems
Business property lending can become complicated when the property is commercial, the borrower structure is complex or the financials are not presentation ready. The main problems usually involve servicing, security and documentation.
Borrowing capacity is lower than expected
A borrower may assume the property alone will carry the deal, but lenders also want to see enough business strength to support the debt.
Possible solutions include:
improve the financial presentation of the business- reduce short term liabilities
- add stronger supporting security
- lower the target purchase amount
Costs are higher than expected
Commercial property purchases can involve valuation fees, legal costs, stamp duty and lender fees on top of the deposit.
Possible solutions include:
- prepare a full acquisition cost estimate early
- hold enough cash buffer outside the deposit
- review all lender and legal costs before signing
- avoid stretching the business too tightly on day one
The loan structure is not aligned to the business
A facility that is too short, too inflexible or based on the wrong entity can create problems later.
Possible solutions include:
- match the borrowing entity to the property strategy
- choose a term that suits the business cash flow
- confirm guarantee requirements early
- structure the loan with an exit or review plan in mind
Steps to get Finance
Step
01
Identify the property and confirm it suits the business.
Step
02
Review business financials and borrowing capacity.
Step
03
Work out deposit, equity and total acquisition costs.
Step
04
Submit the application with the business and property documents.
Step
05
Complete valuation, lender approval and loan documentation.
Step
06
Settle the purchase and operate from the property under the new loan.
Speak With A Business Property Loan Specialist
Business property loans are assessed on more than just income.
The lender will usually look at the property, the business, the security position, the entity structure and the intended use of the premises before confirming terms. A detailed review can show which lenders are realistic, what deposit is likely to be required and how the loan should be structured from the outset.
Speak with a business property loan specialist about your scenario.
Submit the form for a business property loan assessment.
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