How Innovate Funding Helps Your Business Secure Competitive Financing on Commercial Properties

Securing the right financing for a commercial property can make or break a business’s growth strategy. Many companies turn to alternative lenders for quick and competitive solutions with traditional banks tightening lending requirements. At Innovate Funding, we understand the urgency and flexibility required in the commercial property market. That’s why we’re helping businesses arrange a 60% Loan-to-Value Ratio (LVR) at a competitive 9% per annum rate, providing access to the funds needed to seize new opportunities.

This blog will explain how we do it, guiding you through the benefits, how LVR works, and why our alternative lending solutions stand out in the Australian market. Let’s dive into how we help our clients unlock the capital they need for growth without the rigid restrictions often found in traditional lending.

1. Understanding the 60% LVR and Its Benefits for Your Business

A Loan-to-Value Ratio, or LVR, is simply a measure of the loan amount about the property's appraised value. For example, if you’re looking to purchase a commercial property valued at $1 million, a 60% LVR means you could borrow up to $600,000 while covering the remaining 40% as a down payment or through other financing means.

But why is 60% an ideal figure?

• Lower Risk: A 60% LVR reduces risk for the lender and the borrower, allowing lenders to offer more favourable rates and terms.

• Better Cash Flow Management: By leveraging property equity at a moderate LVR, businesses can keep debt manageable, ensuring cash flow remains available for daily operations or unexpected costs.

• Growth Opportunities: Accessing 60% LVR financing at a competitive 9% p.a. empowers businesses to invest in their future, whether that means expanding locations, upgrading facilities, or freeing up working capital.

This type of lending can be a game-changer for businesses looking for growth, flexibility, and reasonable interest rates.

2. What Sets Our 9% p.a. Financing on Commercial Property Apart?

Interest rates in the non-bank lending space can vary widely depending on risk factors, loan terms, and the lender’s specific requirements. A 9% per annum rate for a 60% LVR loan is highly competitive in the Australian commercial lending market, particularly for businesses that may not meet traditional bank criteria. Here’s why our clients find this rate valuable:

• Transparency in Terms: We believe in upfront, transparent terms that clients can trust. There are no hidden fees or balloon payments; clients know precisely what they’re committing to from day one.

• Efficient Approval Process: Our process is designed for speed, giving business owners quick access to capital when timing is crucial. We streamline each step from the initial application to final approval to ensure minimal delays. Innovate Funding received funds within 3 days of receiving the deal for our client.

• Flexible Repayment Options: We offer customisable repayment schedules that align with each business’s cash flow, allowing clients to balance debt repayment with other financial priorities.

This 9% rate allows our clients to maintain financial predictability, essential for planning and executing long-term strategies.

3. The Non-Bank Advantage: Why Choose Innovate Funding?

Choosing a non-bank lender like Innovate Funding can make the difference between a successful financing experience and a frustrating one. Non-bank lenders offer unique advantages, especially in the commercial real estate market, where businesses often need agility to compete and grow. Here’s why our clients value the non-bank lending route:

• Easier Approval Processes: Traditional banks often require extensive documentation and lengthy assessments and can be stringent about credit histories. We focus on the potential and value of the commercial property, not just credit scores, allowing us to work with clients who may have complex financial backgrounds.

• Personalised Solutions: Unlike banks' one-size-fits-all products, our lending solutions are tailored to each client’s specific circumstances. Whether the loan is for a small warehouse or a multi-use commercial building, we customise loan terms and repayment options accordingly.

• Shorter Processing Times: Our lending process is significantly faster with fewer bureaucratic hurdles. Our clients appreciate the ability to move quickly in a competitive property market, often securing their loans and properties well before traditional lenders would have completed their assessments.

  
  

4. How We Helped a Client Achieve 60% LVR at 9% p.a. in Record Time

Let’s look at a recent client success story to showcase this financing solution's power. A small but rapidly growing logistics company approached us to finance the purchase of a new warehouse property valued at $1.5 million in Western Sydney. They needed quick access to funds to secure the property, as other offers were coming in fast.

Here’s how we made it happen:

1. Initial Consultation: Within the first 24 hours, we connected with the client to understand their goals, the property’s potential, and their financial position. Our team reviewed their needs and confirmed that a 60% LVR solution was suitable.

2. Loan Approval: Using our streamlined approval process, we obtained preliminary approval for a 60% LVR loan totalling AUD 900,000 at an interest rate of 9% p.a. within three days.

3. Customised Repayment Terms: The client needed repayment flexibility, as their business experiences seasonal income fluctuations. We provided a tailored repayment plan, allowing for lower and higher payments during slower months during peak seasons.

4. Quick Funding Release: The funds were transferred within one week of initial contact, enabling the client to finalise the property purchase and begin operations in the new warehouse within a month.

This type of responsive and customised solution is why clients turn to Innovate Funding when timing and flexibility matter.

5. Is 60% LVR at 9% Right for Your Business?

While this financing option has helped many of our clients, it’s essential to determine whether it’s the right fit for your business. Here are a few questions to consider:

• Do you have 40% of the property value available as a down payment? Securing this loan requires an investment but with a substantial return in potential business growth.

• Is timing critical for securing the property? If you’re competing for a high-value property, a quick approval process with flexible terms could give you the needed edge.

• Are you looking to preserve cash flow? You can maintain day-to-day operations while growing your property portfolio with predictable repayments and reasonable interest.

If these align with your business goals, then our 60% LVR at 9% p.a. might be the ideal solution.

6. Ready to Discuss Your Options? Here’s How to Start

Getting started with Innovate Funding is simple. We offer free consultations to assess your needs and discuss whether a 60% LVR at 9% is right for you. Our team brings years of experience in non-bank commercial lending, so you can trust that we’ll provide a solution tailored to your growth strategy.

Our mission is to empower Australian businesses with the financing they need without the red tape. Contact us today, and let’s discuss how we can make your next commercial property purchase a reality.