Commercial property loans - how they work and how to qualify

• Cash flow challenge: I want to invest in or develop a commercial property, but I don’t have the upfront capital and I’m unsure how to qualify for finance.

• Perfect for: Property developers, investors, or business owners looking to purchase or refinance commercial property.

Novuna helps businesses secure the right finance for commercial property investments. We compare lenders, guide you through the process, and make sure you get the best terms for your needs.

Compare providers now Speak to an expert

What is a commercial property loan?

A commercial property loan is a type of finance used to buy, build, or refinance property that’s used for business purposes. Examples include offices, warehouses, factories, or retail units. These loans typically involve larger sums, longer terms, and more detailed lender checks than standard business loans.

How commercial property loans work

• Loan amount: Usually based on a percentage of the property’s value (known as loan-to-value or LTV).

• Term: Can range from 1 to 25 years, depending on the type of loan.

• Repayment: Fixed or variable monthly repayments, often secured against the property itself.

• Interest rates: Rates depend on your credit profile, the property type, and market conditions.

Compare providers now Speak to an expert

What lenders look for

To approve a commercial property loan, lenders will typically check:

• Your business financials and ability to repay

• The projected rental or trading income from the property

• The value and condition of the property

• Your experience as a business owner or property investor

• Deposit size (usually 20–40% of the property value)

Common types of commercial property loans

• Owner-occupied loans: For businesses buying premises to trade from

• Commercial investment loans: For property developers or investors renting out space

• Bridging loans: Short-term finance while waiting for long-term funding or property sales

• Development finance: To fund construction or renovation projects

How to qualify for a commercial property loan

• Maintain strong financial records and cash flow forecasts

• Prepare a business plan showing how the property will generate income

• Save for a deposit to reduce the lender’s risk

• Work with a finance broker or advisor to compare lenders and products

How Novuna Business Cash Flow helps

Novuna connects property businesses with lenders that understand commercial development and investment. Whether you’re buying your first business premises or funding a large-scale project, we’ll help you secure the right loan at the best possible terms.