The commercial loan market has become far more competitive, with interest rates now available to commercial borrowers that were previously only accessible for residential loans. This allows business owners to access greatly improved borrowing rates, while also capitalising on the equity within their commercial facility, avoiding the need to secure a loan against your home.
Savings available to business owners (an example):
A childcare facility completed a refinancing and equity release. Previously borrowing at an interest-only rate of 3.09%, the refinancing secured a 2.39% interest-only rate, creating a 23% loan cost reduction, freeing up $15,000 of annual interest savings.
Valuation Options:
In this case, and most cases, the commercial borrower can choose from the lender’s panel of valuers. This ensures the business owner can obtain indicative quotes for the valuation before it is completed, and that no money is wasted in the process. Valuation costs range from $2,000 – $5,000, depending on the size, type, and nature of the security.
The Equity Release Component:
For the childcare facility, having recently increased the number of children in attendance, the valuation for the childcare centre was increased accordingly, allowing the business to release additional equity in the facility. These funds were put towards renovations, increasing the childcare facility’s value further.
Shore Financial has access to commercial rates as low as 2.09%.
If you’re a business owner that can benefit from the lowest available borrowing costs, as well as access equity release options to best use your capital:
email: jamesleader@shorefinancial.com.au or call: 0450 029 418