Commercial Finance
Can a Company Borrow to Buy Commercial Property?
5 min read- Finance Guide
- Updated 2026
Quick answer
Typical deposit range
60% 80%
Of the property's value
- Business deposit required 20% - 40%
- Owner occupied (best case) Up to 80%
- Commercial investment 65% - 75%
- Specialised properties 60% - 70%
1300 000 000
1300 000 000
1300 000 000
1300 000 000
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Loan Amount and Deposit
Most lenders will fund 60 percent to 80 percent of the property's value
This means the company usually contributes 20 percent to 40 percent as a deposit or equity
-
Lender contribution 60% - 80%
-
Company deposit 20% - 40%
The exact amount depends on:
The property type- The company's financial strength
- The lease structure
- The lender's risk policy
Investment
Commercial Property
Some companies purchase commercial property purely as an investment
In this case, lenders may also assess:
-
Rental income
-
Tenant quality
-
Lease length
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Lease length
-
Property location
Strong tenants with long leases can make financing easier
Assessing The Company's Financial Position
Lenders normally review several financial factors before approving the loan
These may include:
Common Problems
Companies sometimes experience challenges when applying for commercial property finance
Limited Trading History
If the company is newly established, lenders may require additional financial evidence or stronger guarantees from directors
Possible solutions include:
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Providing director income documentation
-
Offering additional security
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Using lenders that accept newer businesses
Insufficient Deposit
Companies must usually contribute a deposit or equity into the purchase
Possible options include:
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Using equity in other property
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Contributing additional capital to the company
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Using multiple security properties
Incorrect Loan Structure
Some borrowers structure the purchase incorrectly when applying for commercial finance.
Working with lenders experienced in commercial property loans can help structure the borrowing appropriately
Weak Business Financials
If the company's financial records show limited income or unstable cash flow, lenders may reduce the loan amount
Improving financial documentation or reducing existing debts may improve approval chances
Steps to get a Commercial Property Loan through a Company
Step
01
Identify the commercial property the company intends to purchase
Step
02
Confirm how much deposit or equity the company can contribute
Step
03
Prepare company financial statements and tax returns
Step
04
Confirm the property's value and rental income if applicable
Step
05
Submit the loan application to lenders that offer commercial property finance
Step
06
Once approved, the loan settles and the company takes ownership of the property
Speak with a Development Finance Specialist
Property development finance can vary significantly depending on the project size, location, approvals, and the developer's experience.
A specialist can review your project and help determine which lenders may be able to fund it.
Speak with a finance specialist about your development project.
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