When a commercial property needs to be secured now
The right factory, warehouse, shop or office doesn't come up often. When it does, the vendor's agent wants a signed contract and a deposit, and the settlement period on commercial contracts can be short. If you are an owner-occupier, buying the building you trade from can lock in your location for years. If you are expanding, a nearby industrial unit may be the only one in the area that suits.
The problem is that commercial bank finance is slow. Banks want financials, leases, a valuation, environmental reports, and often a long credit process. Approval can take up to three months or more, and the bank may approve less than you need. That doesn't line up with a contract that says settle in 30 or 45 days.
What Equity Tap can fund
Equity Tap is a direct, independent private business lender lending its own money from $50k to $5m for one to twelve months. Loans are secured by a first mortgage, second mortgage or caveat over residential or commercial property anywhere in Australia. For a commercial purchase, that security can be property you already own, the property you are buying, or both.
- Deposit funding, secured against your home or another property, so you can sign and exchange without waiting on a bank.
- Full purchase funding, where the combined security supports it, so you settle on time and refinance to a bank afterwards.
- Settlement gap funding, when the bank approval is lower than expected or won't be ready by the settlement date.
- Stamp duty and costs, as part of the overall loan where the security allows.
Why our process is faster
We don't order a valuation before approval, which removes one of the biggest waits in any commercial deal. For a property-secured loan we don't need tax returns, BAS, profit and loss, an accountant's letter or bank statements. There is no credit committee; the person you speak to is often the person who decides.
| Step | Typical bank | Equity Tap |
|---|---|---|
| Initial answer | After full application and review | Conditional approval often on the phone |
| Term sheet | Days to weeks | About 30 minutes once we have the scenario |
| Valuation | Ordered, paid for and waited on | Not ordered before approval |
| Settlement | Commonly up to three months or more | Eligible loans in as little as 24 hours |
How the loan is repaid
Most commercial purchase loans with us are repaid by a refinance to a bank or another long-term lender once the property is owned and the bank has completed its process at its own pace. Other exits include the sale of another property, the settlement of a property sale already underway, or business cash flow for smaller deposits. Our refinance bridging loans page covers that path in more detail.
Interest for up to the first six months can be prepaid or added to the loan, so there are no scheduled payments while the refinance is arranged. Interest is not waived, but it doesn't strain cash flow at a time you may also be fitting out or moving into the new premises.
For example
For example, a food manufacturer has outgrown its leased factory. An industrial unit next door comes up for sale and the vendor wants a short settlement. The owners use their home as security for a second mortgage to pay the deposit on exchange, then take a short-term first mortgage over the new unit to settle. Once settled, they refinance to a bank on a long-term commercial loan.
Buying at auction or buying a development site?
Auctions are unconditional from the fall of the hammer; see auction purchase finance. If you are buying land to develop, see development site purchase funding. If you're buying a business along with its premises, see buying a business.
What we need
- ID for each borrower and guarantor.
- The contract of sale or agent's details for the property being bought.
- Details of any property being offered as additional security and its existing mortgage.
- Evidence of the exit, such as a bank pre-approval or a sale contract.
No credit check at initial assessment. Past credit issues are not automatically a problem.
From first call to settlement
Call 1300 123 024 before you sign if you can, so you know your funding position. Conditional approval can often be given on the phone and a term sheet issued in about 30 minutes once we have the scenario. Eligible loans can settle in as little as 24 hours. For more on our commercial lending, see commercial property loans and urgent property settlement loans.
Brokers
If your client's bank approval won't land before settlement, send the deal through our broker page. We fund now and you keep the long-term refinance.
Secure the property
Each loan is priced on the client's individual circumstances, aiming for the sharpest rate available for that situation, with the full cost shown before you proceed. Apply online or call 1300 123 024.
Business-purpose lending only. Approval, timing and terms depend on the scenario.
Frequently asked questions
Can you fund the deposit on a commercial property?
Can you fund the full purchase price?
Do you lend on industrial property?
Do you need a valuation of the property I am buying?
How fast can you settle?
What if my bank approved less than I need?
Do you need my financial statements?
How long can the loan run?
Brokers: send the scenario through the Equity Tap broker channel and you will deal with the same lending team.