We have no appetite for that.

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This is a typical response that inexperienced brokers get when trying to find a lender who will finance a business or commercial opportunity.  Unlike residential lending, banks tend to pick-and-choose the sorts of businesses to which they will lend.  And, when they come to be over-concentrated in one sector, they can quickly lose appetite for lending on such businesses.

 

At the same time, banks have been able to develop a nucleus of business bankers who understand specific types of businesses; NAB is renowned for agribusiness and ANZ resources.

 

And this is where good brokers kick in; they know which banks have an appetite for a specific commercial deal and they know if they have the skill sets to understand the business too.

 

They also know which lenders are unfazed by risk. Most lenders will only lend up to 65 per cent of the value of a commercial premise, but one of the Big Four will go up to 70 per cent.

 

Here are some examples of commercial lending that Chan and Naylor brokers are working on at the moment:

 

  • Medical and dental fit-outs
  • Warehouses
  • Accounting practices
  • Private schools
  • Real estate agencies
  • Pizza franchises
  • Gyms
  • Coffee shops
  • Hairdressers
  • Pubs

 

If you want to talk about financing your commercial activities, please contact your Chan and Naylor broker.

 

Graeme Salt

Graeme Salt

Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.

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