Commercial Property Finance Perth: What WA Businesses Need to Know Before Applying

Buying commercial premises — a warehouse, office, retail space or industrial unit — is one of the biggest moves a business can make, and the finance behind it works very differently to a home loan. If you are weighing up commercial property finance in Perth, understanding how lenders think before you apply can save you time, money and a lot of frustration.

This guide walks through what commercial property finance is, how it differs from residential lending, what deposit and documents you will need, and how to give your application the best chance of approval.

What is commercial property finance?

Commercial property finance is lending used to purchase, refinance or develop property that is used for business purposes rather than as a home. That covers offices, retail shops, factories, warehouses, medical suites, hospitality venues and specialised premises. The loan is typically secured against the property itself, and sometimes against other business or personal assets.

How commercial lending differs from a home loan

Residential home loans are relatively standardised. Commercial lending is not. Lenders take a more individual view of each deal, weighing up the property, the borrower and the income that will service the loan. In practice that means:

• Larger deposits — usually 20% to 35% of the property value.
• Shorter loan terms — often 10 to 25 years rather than 30.
• Higher rates and fees — reflecting the extra risk lenders take on.
• More documentation — business financials, tax returns, and lease details where relevant.

Because the criteria vary so much between lenders, two banks can look at the same deal and come back with very different answers. This is exactly where working with a broker who compares the market — like the team at PTR Property Finance — earns its keep.

How much deposit and what LVR?

Most lenders will fund 65% to 80% of a commercial property's value, meaning you contribute the remaining 20% to 35% as a deposit. Owner-occupiers buying premises for their own business can sometimes borrow at higher ratios than passive investors, particularly where the business has a solid trading history. Additional security — such as equity in another property — can also lift your borrowing power.

What lenders assess before they say yes

When you apply for commercial property finance, expect lenders to look closely at:

• The property — its type, location, condition and how easily it could be re-let or resold.
• Serviceability — whether your business income (or the rental income) comfortably covers repayments.
• Your financials — profit and loss statements, tax returns, and business bank statements.
• The lease — for investment purchases, the strength and length of the tenant's lease.
• Your track record — trading history, existing debts and credit conduct.

Owner-occupier vs investment: know which you are

If your own business will operate from the premises, that is an owner-occupier purchase, and lenders will largely assess the business behind it. If you are buying to lease the property to a tenant, that is an investment, and the lease and rental income carry more weight. The distinction affects your rate, your LVR and the documents you will need, so it is worth being clear from the outset.

Preparing to apply: a simple checklist

You can dramatically improve your chances — and your speed to approval — by having the basics ready before you apply:

• Two years of business financials and tax returns (personal and business).
• Recent business bank statements.
• Details of the property, including the contract of sale or a target price.
• A copy of the lease, if buying an investment property.
• A summary of your existing assets, liabilities and any other security you can offer.

Don't forget cash flow and fit-out

The purchase is only part of the picture. Moving in, fitting out and settling into new premises all take working capital, and it is smart to plan for that alongside the property loan. If a purchase will stretch your cash flow, our cash flow lending options can bridge the gap, while equipment for the new site can be funded separately through asset finance rather than eating into your deposit.

How a broker helps

Commercial lending rewards preparation and market knowledge. A broker compares many lenders at once, packages your application the way lenders want to see it, and negotiates on structure and rate — often surfacing options your own bank cannot offer. For WA businesses in particular, knowing which lenders are comfortable with specific property types and industries can be the difference between an approval and a decline.

If you are considering a commercial purchase, the earlier you talk to a broker the better — ideally before you sign a contract. Get in touch with PTR Finance Group and we will help you understand your borrowing power and map out the right approach for your situation.