Quick Business Loans

Quick Business Loans

Quick business loans can be used by small businesses and self employed people that would like to take advantage of a time sensitive business opportunity. Often the banks and normal non-bank lenders have a long and extensive process of assessing loan applications, including small business loans or other commercial loans. This can mean that if you have a time sensitive business opportunity and need funds quickly that the banks and normal lenders will be too slow in assessing your application that you can miss out. This can be a costly process for business looking to take advantage of a situation quickly.

For example you may be able to purchase plant, equipment or other goods at a heavily discounted price but for a limited window of time and then on-sell at a high mark-up. If you don't buy within the short window the opportunity is missed. In this case you may be able to obtain a quick business loan buy the goods, on-sell them and repay the short term loan and pocket a tidy profit. However, it is important to note that short term loans come at a price. Quick business loans are typically quite a bit more expensive than normal loans as the lender is taking the risk of a fast application turn around time.

Another example of when a fast business loan may come in handy is if you are getting a normal bank loan but the bank is taking its time to assess and approve the application but you are counting on using the funds immediately (for example you have already signed a contract and the bank will not meet the payment due date). In this case you may use the quick business finance from the short term lender to fill the gap between the payment due date and when the bank provides the funds.

The crucial part of a fast business loan is having an exit strategy. An exit strategy means a way to repay the fast business loan. These can be selling whatever the funds are being used to purchase, or refinancing to another longer term lender or obtaining funds from else where.

If you need a quick business loan then contact Oak Laurel. Oak Laurel can arrange for fast business finance that may just save your day!

Commercial construction Finance

The success of a construction project often depends primarily on obtaining optimal construction finance terms meet the needs of the developer and the development.

Oak Laurel has a wide range of lenders, construction loans and development finance to assist you to build and/or develop property.  Oak Laurel can assist you to finance the purchase of vacant residential, commercial or Industrial land, and finance its development. This includes the construction of residential property, retail / shops, commercial property and or industrial property. We have funders that can finance a wide range of development and construction types.

Oak Laurel also has access to funders that can help with the short term funding. This can be of benefit in the initial stages prior to the development approval being granted and in some cases to complete the final stages of a development in the event of a funding shortfall.

Residential construction loans are generally provided on an interest only basis at a variable rate during the construction period. At the end of the construction period the construction loan will revert to a standard home loan or investment loan that has been pre-agreed by you and your lender. If you have development finance for a large scale development the fished property will either be sold at the end of the construction or refinanced from the development finance into and ongoing loan.

Because construction finance typically operates on a draw down basis, that is funds are provided on an as needs basis to pay the builder for the completion of milestones, the borrower will only need to pay interest on the funds that have been ‘drawn down’ (paid to the builder).

Commercial construction financing, for larger scale property development, is typically provided on a variable interest rate basis. However, fixed interest rate loans can be provided in some circumstances such as where the land is acquired and the development is not ready to begin for a certain period of time.

Mezzanine debt / or second tier debt can be provided for some development projects where additional funding is required above the amount / loan to value ratio provided by traditional banks and lenders. Mezzanine finance is typically provided when the developer’s equity is insufficient to make up the difference between the first tier funds and the development costs. Mezzanine debt is typically provided at an interest rate but because the amount is relatively small the total cost to the project is relatively small.

Beginner’s guide to buying a commercial property for investment - Part 5: Lease agreements, permissible activities and use of common areas

Beginner’s guide to buying a commercial property for investment - Part 5: Lease agreements, permissible activities and use of common areas

Commercial property lease agreements

A commercial property lease agreement is the key document where all of the conditions and responsibilities are set out. Cease agreements for commercial real estate are not usually standard templated documents and can be lengthy and complex. Typically a solicitor will be engaged by the owner to draw up the lease agreement according to their specifications. A good solicitor with experience in commercial property lease agreements will be invaluable. However, do not just rely on your solicitor, you should also read the lease agreement to ensure that you know the conditions of the lease. If you do not understand any of it you can ask your solicitor to explain it to you.

Some things to consider in the lease agreement include:

Permissible activities

You may not want certain types of activities to be carried out on your commercial property this may be because they are not allowed by the zoning or body corporate in a strata title property or it may just because some types of activities due to their noise or other reasons are undesirable and may decrease the value of the property or cause issues with neighbouring properties / businesses. Tenants may want to have exclusivity for their business type to avoid further leases to their competitors which could decrease their business. By limiting the activities it can allow a broader range of potential other tenant types.

Use of common areas

Where multiple tenants use a property and there are common areas the activities allowed in these areas should be clearly specified. If not specified some tenants may use the common areas for storage or other activities that could block access or have other undesirable consequences.

Find the full guide here: Commercial property investment (Beginers guide).

Back to part 4 Maintenance costs, refurbishments and outgoings of commercial property investment.

Get professional help with your commercial property finance? 

Oak Laurel have specialist commercial property finance broker that can help you compare commercial property finance rates. Furthermore, our specialists can make comparing the different loans and obtaining the right loan for your commercial property simple and easy. We can even help you to get commercial property loans at 80% LVR (loan to value ratios) in some cases. Contact Oak Laurel to find out more about commercial property finance.

Oak Laurel - finance made easy!

Beginner’s guide to buying a commercial property for investment - Part 4: maintenance costs, refurbishments and outgoings of commercial property investment

Beginner’s guide to buying a commercial property for investment - Part 4: maintenance costs, refurbishments and outgoings of commercial property investment

Commercial property maintenance costs

Typically, the maintenance costs are not covered by the owner the allocation of responsibility for the particular repair or maintenance action will be prescribed in the Leasing Agreement. The tenant will generally be required to keep the premises up to the relevant health and safety standards and is responsible for any refurbishments which will usually require approval by the landlord, which again should be specified in the Leasing Agreement. However, if the commercial property that you are considering purchasing is rundown and will require costly refurbishments it is likely to deter any potential tenants from leasing it as they are usually aware of how costly it will be for them and thus select a property that is already in good condition. Furthermore, especially in areas where there is a high vacancy rate, if the lease is coming to an end the owner may decide to undertake refurbishments in an attempt to retain the tenant rather than have a vacant property.

Refurbishments

Make a detailed condition report of the property before entering into the lease. The condition report should document the condition of the premises at the time the tenant takes control and before the tenant makes any changes. Also just like a residential property, take date-stamped photographs for yourself and the tenant for a visual record of the condition in case a dispute arises and photos are needed as evidence.

Many premises will need fixtures, fittings and services installed. Who is responsible for the fit-out costs will be determined by negotiation and documented in the Lease Agreement between the tenant and the landlord. As the owner you may also want to specify which tradespeople can undertake any refurbishment work to ensure that the work conducted to your asset is of high quality. Some commercial property landlords (especially shop or shopping centre owners) will also require that the tenant renovates the premises on a regular basis (as you agree in the lease agreement) to ensure that the property remains in good condition and can continue to attract quality customers and tenants into the future.

Note: refurbish or refitting requirements in the lease agreement will be void unless the relevant clauses provides sufficient detail to indicate its nature, extent and the timing or any refit or refurbishment. Furthermore, the cost that the tenant is required to contribute towards the cost of any of the landlord’s finishes, fixtures, fittings, equipment or services can be voided unless the landlord notifies the tenant of these costs in the Disclosure Statement that is given to the tenant.

Outgoings

Outgoings such as council rates, insurance, repairs and maintenance are typically paid by the tenant in accordance with the Lease Agreement. This is unlike a residential investment property where these costs are borne by the owner.

Find the full guide here: Commercial property buyers - guide for investors

Back to part 3 - Lease duration, quality of tenants and purchase costs of commercial property
Beginner’s guide

Continue to part 5 - Lease agreements, permissible activities and use of common areas

Are you looking to finance a commercial property? 

Oak Laurel have specialist commercial property finance broker that can help you compare commercial property finance rates. Furthermore, our specialists can make comparing the different loans and obtaining the right loan for your commercial property simple and easy. Contact Oak Laurel to find out more about commercial property finance.

Oak Laurel - finance made easy!

Beginner’s guide to buying a commercial property for investment - Part 3: Lease duration, quality of tenants and purchase costs of commercial property

Beginner’s guide to buying a commercial property for investment - Part 3: Lease duration, quality of tenants and purchase costs of commercial property

Lease duration

Commercial properties typically have longer leases. It is fairly common for a commercial property lease to have an initial lease period of 5 years with an option to renew for another 5 year. This is unlike residential property where rental leases are typically for 12 months or 6 months followed by month to month or resigned for another 6 to 12 months.

Quality of tenants

Just like residential property, commercial property tenants are not all the same. In commercial property leasing, government and corporate tenants are the best tenants. They are unlikely to default on the rent and are likely to be long term tenants. Small and new business are higher risk and may be more cost conscious that large established business or government tenants with established and secure cash flows.

Commercial property purchase costs

Quality, well located commercial properties can be expensive but can have yields proportionately. If buying an entire building or lot is out of your price range there are often smaller and cheaper strata title premises available that may suit your budget. Different areas will have different cost per Square meter. This will be related to the rental lease per square meter. Checking the price per square meter of comparable sale in the area can provide a likely sale price. However, if there is an existing long lease with a quality tenant this can also influence (increase) the purchase price compared to a vacant property or where the lease is coming to an end and unlikely to be renewed.    

Find the full guide here: Commercial property buyers - guide for investors

Back to part 3 - Lease duration, quality of tenants and purchase costs of commercial property

Continue to part 4 - Maintenance costs, refurbishments and outgoings of commercial property investment

Are you interested getting a commercial property loan? 

Oak Laurel have specialist commercial property finance broker that can help make comparing the different loans and obtaining the right loan for your commercial property as simple and easy as possible. Contact Oak Laurel to find out more about commercial property finance: Australia.

Oak Laurel - finance made easy!

Beginner’s guide to buying a commercial property for investment - Part 2: Types, returns and risks of investing in commercial property

Beginner’s guide to buying a commercial property for investment -Part 2 Types, returns and risks of investing in commercial property

Types of commercial property

There are three main types of commercial property these are: office, retail and industrial.

However, there are many other specific types. The type of property can be important from a finance perspective as banks and lenders do not like to finance some types of commercial property or may require you to contribute a larger deposit (so the loan to value ratio is low).

Returns from commercial property

Returns (% lease/rental yield) from commercial property are typically higher than that rental/lease % yield from residential property. This is because commercial property is considered as higher risk (than residential property) and this compensated with a higher return. Commercial yields vary and typically become depressed with capital gains (like residential property) but can be in the range of 6% to 10% compared to that of residential property that may range from 2% to 5% (as a general guide).

Risks of investing in commercial property

The higher risk associated with investing in property comes from two main sources. The risk of vacancy and the risk of not being able to sell it quickly. Unlike residential property in Australia’s major cities the vacancy rate of commercial property can be much longer. Commercial property can be more impacted by down turns in the economy, whereas people still need a place to live regardless of economic conditions.

Find the full guide here: Commercial property buyers - guide for investors

Back to part 1 - Introduction to commercial property investment

Continue to part 3

Are you interested getting commercial property finance? 

Oak Laurel have commercial property finance specialists that can help make comparing and obtaining the right commercial property finance as easy as possible. Contact an one of  Oak Laurel's commercial property mortgage brokers.

Oak Laurel - finance made easy!

Beginner’s guide to buying a commercial property for investment - Part 1

Beginner’s guide to buying a commercial property for investment -Part 1

Most property investors get started by investing in residential property. It is usually the familiarity with residential property through being a tenant in someone else’s investment property and then buying your own home that gives potential property investors the understanding and confidence to purchase residential property as an investment.

Unless you run a business that leases a commercial property or are involved in the part of a company that deals with lease of its commercial property you probably will not have the same familiarity with this property type(s). This does not mean that commercial property cannot be a good investment but it is prudent to do some research and understand any potential investment before investing.

Increasingly it is not just Australians that see the value in investing in Australia’s commercial property. Foreign buyers are increasingly showing interest and investing in Australia’s commercial property market.

Commercial property is a bit different from residential property in the leasing terms and conditions, GST implications and where the responsibility lies for the building expenses.

This beginner’s guide to buying a commercial property for investment describes some of the issues that you should consider when considering purchasing and leasing a commercial property.

This is not an exhaustive guide. You should get professional advice before proceeding.

Continue to part 2 - Types, returns and risks of investing in commercial property

Find the full guide here: Buying a commercial property - guide for investors

Are you interested in financing a commercial property? 

Oak Laurel finance brokers have commercial finance experts that can help smooth your experience when comparing and obtaining commercial property finance. Contact an Oak Laurel commercial property finance broker.

Oak Laurel - finance made easy!