Commercial Loan Brokers Tewantin

Brokering a commercial loan to buy premises

Loanright Financial Services Helps Tewantin Business Owner Secure Their Premises with 80% LVR Commercial Loan

Loanright Financial Services recently helped a small business owner in Tewantin, Queensland, achieve a major milestone, purchasing the very premises from which they operated their fabrics manufacturing business. This transaction not only secured the long-term stability of the business but also delivered significant monthly savings, thanks to Loanright’s ability to source a commercial loan with favourable lending terms that many lenders would not offer.

The Opportunity: Purchasing the Business Premises

The business owner had been renting their workspace in Tewantin for several years. As a small, local fabric manufacturer, they had steadily grown their operations, building strong relationships with suppliers and customers in the area. When the landlord decided to sell the property, the business owner saw it as a rare opportunity to purchase the premises and gain greater control over their financial future.

The landlord, keen to sell directly to the tenant, offered the property at a discounted price, recognising the value of the existing business’s presence and commitment to the location. This presented the perfect chance for the business owner to transition from renting to owning, securing the premises at below-market value.

The Commercial Finance Challenge

However, securing commercial property finance proved to be a challenge. In the commercial lending market, most banks and traditional lenders are generally willing to lend a maximum of 70% of the property’s value, leaving the borrower to come up with a significant deposit to cover the remaining 30%.

In this case, the business owner had a solid financial track record but did not have the full 30% deposit readily available. This shortfall threatened to derail the purchase, as the client would not have been able to proceed without bridging finance or substantial additional funds.

The client reached out to Loanright Financial Services for expert help in navigating this complex situation and finding a solution that would enable them to move forward.

Loanright’s Tailored Finance Solution

The Loanright Financial Services team immediately set to work, carefully assessing the business’s financial position, reviewing tax returns, profit and loss statements, and rental payment history. The brokers recognised that the business owner had consistently met all rental obligations and that the monthly rent being paid was higher than what mortgage repayments would be if suitable finance could be secured.

Loanright leveraged its extensive network of lenders to search for options beyond the typical big banks. After detailed negotiations and lender comparisons, Loanright successfully identified a commercial lender willing to extend up to 80% Loan-to-Value Ratio (LVR) for this purchase, an outcome that significantly exceeded the industry norm.

This higher LVR made all the difference. The client was now able to proceed with the purchase using the funds they had available, without the need to seek additional capital or delay the settlement.

Significant Monthly Savings

One of the transaction’s most immediate and tangible benefits was the substantial monthly savings for the business owner. By transitioning from paying rent to making mortgage repayments, the client now saves approximately $2,200 per month. This saving has not only improved cash flow but also strengthened the business’s overall financial stability.

Instead of contributing to a landlord’s investment, the business owner is now building equity in their own property, creating long-term wealth and securing their operational base well into the future.

A Smooth and Supportive Process

Throughout the process, the Loanright team provided end-to-end support, handling the complex paperwork, liaising with the lender, and ensuring the settlement proceeded smoothly. Their expertise in commercial finance, coupled with a deep understanding of the client’s unique situation, was instrumental in achieving this successful outcome.

The client appreciated the transparency, communication, and tailored advice provided by Loanright. Having a team that genuinely understood their business and was willing to explore non-traditional finance options made all the difference in turning a challenging scenario into a positive result.

Looking to the Future

This transaction demonstrates Loanright Financial Services’ ability to think outside the box and deliver finance solutions that truly support the growth and security of local businesses. Loanright helped this Tewantin business owner take a significant step towards long-term financial independence by securing favourable lending terms and providing personalised service.

For many small business owners, the opportunity to purchase their premises can be a game-changer, but the barriers to commercial finance often seem insurmountable. Loanright’s expertise and lender network can help clients overcome these hurdles and achieve their property ownership goals.

Whether you’re looking to purchase a business property, upgrade equipment, or refinance existing loans, Loanright Financial Services is ready to guide you through the process and find a solution that works for you.

Loanright Financial Services can Queensland businesses set up commercial finance quickly.