Commercial lenders will generally require you to have at least 1.1 to 1.4 times the amount of income to proposed interest expenses. This can include a residential property that you own, which you can use as security for the commercial loan.
Coupled with a strong income and asset position, we may be able to get you qualified for a factory loan even if you have a bad credit history. Conditions apply so please speak with a specialist mortgage broker about your situation.
If you’re simply purchasing the freehold (the property and land itself), then banks will simply want to see that you can afford to pay back the loan.
For business owners looking to purchase a factory as a means of expanding their business, that is, moving your business into the factory, the bank will usually want to see:
Financial statements including Business Activity Statements (BAS), an Australian Taxation Office (ATO) tax portal printout or bank account statements for the last three to six months showing your turnover.
A business plan that details cash flow forecasts, market competition and your business model.