Commercial Property Loan Currimundi

Brokering a commercial property loan for a business

Case Study: Commercial Property Acquisition for an Electrical Retail Business in Currimundi, QLD

Background

Loanright Financial Services was approached by an established electrical retail business seeking funding to purchase the retail premises they were currently leasing in Currimundi, Queensland. The business had experienced steady growth over several years and saw the acquisition of its premises as a strategic move to secure long-term stability, eliminate rental expenses, and build equity.

With a strong financial position and significant savings, the client had accumulated a substantial deposit of $750,000. However, they required expert guidance to structure the remaining finances efficiently while ensuring the loan aligned with their business cash flow and future expansion plans.

Client Objectives

The client’s goals were clear and commercially focused:

• Purchase the retail property valued at $1,200,000
• Minimise borrowing costs by leveraging a large deposit
• Structure the loan to support ongoing business operations
• Secure a competitive interest rate from a commercial lender
• Ensure a smooth and timely settlement process

Additionally, the client wanted to understand all upfront costs involved, including Queensland transfer (stamp) duty, to ensure accurate budgeting.

Key Challenges

Despite the client’s strong financial position, several challenges needed to be addressed:

• Structuring a relatively low Loan-to-Value Ratio (LVR) commercial loan
• Identifying lenders that favour owner-occupied commercial property
• Ensuring the loan repayments are aligned with business cash flow
• Managing additional acquisition costs, such as transfer duty and legal fees
• Coordinating a timely approval and settlement

Commercial lending policies can vary significantly between lenders, particularly for retail properties, making lender selection critical to achieving a favourable outcome.

Loanright Financial Services’ Approach

Loanright Financial Services conducted a comprehensive review of the client’s financials, business performance, and long-term objectives. Given the client’s large deposit (over 60% of the purchase price), this presented a low-risk lending scenario, which allowed access to more competitive lending options.

The strategy focused on:

• Targeting lenders with a strong appetite for owner-occupied commercial properties
• Negotiating favourable interest rates due to the low LVR
• Structuring the loan term to balance affordability and flexibility
• Ensuring minimal documentation requirements to expedite approval

By leveraging its lender network, Loanright Financial Services identified a suitable commercial lender offering competitive terms and efficient processing.

Understanding Queensland Commercial Duty

As part of the advisory process, Loanright ensured the client was fully informed of the applicable transfer duty costs in Queensland.

Commercial property purchases in Queensland are subject to standard transfer duty rates, calculated on a tiered system. As of 2025–2026, the rates are:

• $0 – $5,000: Nil
• $5,001 – $75,000: $1.50 per $100 over $5,000
• $75,001 – $540,000: $1,050 + $3.50 per $100 over $75,000
• $540,001 – $1,000,000: $17,325 + $4.50 per $100 over $540,000
• Over $1,000,000: $38,025 + $5.75 per $100 over $1,000,000

For a $1,200,000 commercial property, this equates to approximately $66,000–$67,000 in transfer duty, which was factored into the client’s total acquisition costs.

Loanright ensured the client had sufficient funds available to cover these costs in addition to the deposit.

The Finance Solution

Loanright Financial Services successfully structured a commercial loan of approximately $450,000, representing a low LVR of around 37.5%.

Key features of the solution included:

• Competitive commercial interest rate due to strong equity position
• Flexible loan term tailored to business cash flow
• Ability to make additional repayments
• Streamlined approval process with minimal conditions
• Alignment with long-term business ownership strategy

The strong financial profile of the client enabled fast-tracked approval, with the lender viewing the transaction as low risk.

Approval and Settlement

Loanright Financial Services managed the process end-to-end, ensuring efficiency at every stage:

• Application prepared and submitted with supporting financials
• Fast lender assessment due to strong serviceability and low LVR
• Approval issued within a short timeframe
• Minimal conditions are required before settlement
• Seamless coordination with solicitors and stakeholders

This efficient process ensured the client secured the property without delays, allowing business operations to continue uninterrupted.

Outcome

The final outcome delivered significant long-term value for the client:

• Successful acquisition of a $1,200,000 retail property
• Reduced reliance on leasing and rental expenses
• Strong equity position from day one
• Manageable loan repayments aligned with cash flow
• Increased business stability and asset ownership

By owning their premises, the client has positioned their business for future growth while building a valuable long-term asset.

Conclusion

This case study highlights the importance of strategic structuring and lender selection in commercial property finance. With the right guidance, even complex transactions can be simplified and optimised for long-term success.

Loanright Financial Services delivered a tailored solution that not only met the client’s immediate needs but also supported their broader business goals, demonstrating the value of expert commercial finance broking.

Loanright Financial Services can help businesses set up commercial property loans on the Sunshine Coast quickly.