Are you eyeing a commercial property for your business or in need of business finance without tapping into your cash flow? Discover three avenues to secure a 100% commercial loan using the equity in your existing residential property, a guarantor, or your business assets, including client books and equipment. 

Pro Tip: Combine these options for a seamless way to borrow up to 100% of the commercial property value. Simplify the process with a mortgage broker. 

1: Property – Utilize Your Equity 

Looking to borrow 100% of a commercial property’s value? The most direct route is leveraging existing equity in a property you own as security for the loan. Explore options based on the type of property: 

• Residential Property: Borrow up to 80% (90% for certain professionals) for the purchase. 
• Commercial Property: Secure working capital or equipment finance by borrowing against your business premises. Limits vary based on property type. 
• Pros: Streamlined approval process. 
• Cons: Ties up equity in your property. 

2: Guarantor – Unleash Your Business Potential 

If you prefer not to use your property as collateral, enlist a guarantor—be it a friend, parent, or business partner. They can use their property to provide up to 80% equity (60-70% for commercial properties). 

Pros: Unleash your property equity for business needs. 

Cons: Guarantor liability varies, and they may be responsible for the entire loan amount in certain cases. 

3: Business Assets – Leverage Your Business Value 

Explore a balance sheet lend, where lenders secure the loan against your business’s value, encompassing trail books, equipment, vehicles, and goodwill. 

Examples: 

• Up to 60% of gross fee income for client books. 
• Up to 60% of the rent roll purchase price for rent rolls. 
• Engage in a buy and leaseback for equipment. 

Considerations: Equipment should be no more than six years old for a leaseback lend. 

Pros: Capitalize on your business assets. 

Cons: Forfeit depreciation and tax benefits.