How-to Secure Commercial Property Loans Without a Bank
- Kate Westall
- 2 hours ago
- 4 min read
Let me tell you about my friend, James. Last year, he tried buying a warehouse in Melbourne’s outer suburbs. The banks knocked him back—twice—because his plumbing business had a rough patch during COVID. But here’s the kicker: James ended up securing $1.2 million through a private lender in under a week. How? The lender cared more about the warehouse’s location near a new highway than his temporary cash flow dip. If you’re chasing commercial property loans in Australia and banks keep slamming doors, stick around. I’ll show you exactly how to bypass the red tape and get your deal over the line.

Why Non-Bank Lenders Are Winning Over Aussie Investors
I’ve seen it time and again. Banks love ticking boxes, but real life isn’t that neat. Take Sarah, a client who wanted to buy a medical clinic in Adelaide. The bank fixated on her short credit history. A non-bank lender? They looked at the clinic’s 10-year lease with a GP and approved her loan in 48 hours. Here’s why this approach works:
They move fast. No waiting months for a committee to nod. One lender I work with in Sydney approves loans over coffee—literally.
They think outside the spreadsheet. Got a heritage-listed pub in regional Victoria? Banks might run scared. Private lenders see charm (and tourist dollars).
They’re hungry for your business. Unlike the big four, these lenders need you. Use that to negotiate.
The Nuts and Bolts of Australia’s Non-Bank Loan Scene
Last month, I sat down with a Brisbane mortgage broker who’s placed 17 commercial loans this year. Only two were with banks. Why? “Banks are stuck in 2019,” he said. “They’re still asking for 40% deposits on industrial sites, while non-bank lenders are doing 25%.” Here’s the lay of the land:
Who’s Lending Right Now?
Mum-and-dad investor groups: Often retirees pooling cash. They love stable assets like childcare centres.
Specialist commercial lenders: Companies like Think Commercial or Max Funding. They’ll fund anything from mechanic workshops to cold storage.
Online platforms: Sites like Lendstack. Upload your docs, get an offer in hours.
Real Talk: Interest Rates, Fees, and How to Dodge Bullets
Yes, rates are higher. But not as scary as you think. Let’s break it down:
Typical rates (2024): 6.5% to 9.5% for non-bank commercial property loans in Australia, versus 5.5%–7% at banks.
The trade-off: That extra 1–2% buys you speed and flexibility. For a 2M loan over 3 years, you're taking 60K–$120K extra. Could your business make that back faster with the property? Probably.
Watch for:
Valuation fees: 3K–7K, paid upfront. Some lenders split this cost.
Early exit fees: Ouch. One Gold Coast borrower got stung $28K for paying off early. Always ask!
Loan management fees: Sneaky 0.5%–1% annual charges. Negotiate these out.
Step-by-Step: How I Helped a Café Owner Beat the Banks
Here’s a play-by-play of a recent deal:
The problem: Maria wanted to buy a café building in Parramatta. Banks wanted 35% deposit; she had 20%.
The fix: We pitched a private lender with the café’s 7-year lease (tenant pays all outgoings).
The twist: Lender asked for Maria’s home as extra security. She said no. We countered with a personal guarantee instead.
The win: $850K loan at 8.1%, 3-year term. Maria refinanced after 18 months when the property’s value jumped.
Your Action Plan: 5 No-BS Tips to Get Funded
Forget perfection, show potential
Had a bad FY23? Write a one-pager explaining why (supply chain issues, staff shortages) and how you’ve fixed it. Lenders respect hustle.
Hunt down niche lenders
Need funds for a petrol station? Try Auto & Property Loans. Buying a vet clinic? Vet Finance Australia exists. Google “Hodgestonefinance commercial loans Australia” – you’ll be shocked.
Play the location card
Is your property near a new train line? Zoned for future development? Hammer this in your application. A lender once told me, “I’ll fund a shed in the right postcode over a CBD shop any day.”
Get dirty with due diligence
Pull the title report yourself ($25 on landata.vic.gov.au or similar). Check for easements, contamination—anything that could spook lenders.
Prep your “Plan B” file
Include:
A valuer’s contact (in case the lender’s valuer lowballs)
Backup guarantors (your accountant? Business partner?)
3 months of bank statements showing you’re not tapped out
Red Flags That’ll Sink Your Application (From a Lender’s Mouth)
I asked a seasoned Brisbane lender: What makes you reject commercial property loans in Australia instantly?
“Ghost tenants”: Leases expiring in 6 months? No thanks.
DIY valuations: “My mate reckons it’s worth $2M” isn’t a strategy.
Messy books: If your BAS is 6 months late, clean it up first.
No skin in the game: Less than 15% deposit? Hard sell.
The Refinancing Endgame
Got your loan? Great. Now work on an exit plan:
Time it with the market: Property prices up 10%? Refinance to lower LVR and get better rates.
Build rapport: Meet your lender yearly. Coffee, updates, maybe a Xmas hamper. Sounds cheesy, but it works.
Know your break costs: Example: If you owe 1M and rates drop 220K. Do the maths.
Wrapping It Up: Your Next Move
Look, I won’t sugarcoat it—getting commercial property loans in Australia without banks takes grit. But I’ve seen butchers, builders, and even a zoo owner do it. Start with one lender call this week. Ask:
“What’s the quirkiest deal you’ve approved?”
“Can I email you my property details by Friday?”
You’ll quickly learn who’s serious. Remember, every “no” gets you closer to the right “yes.” Now go get that property.
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