fbpx
You Have Plans - We Have Steps To Help You

Warehouse Loans

We help you secure a competitive warehouse loan for your upcoming project.

Are you looking for ways to secure a loan for your warehouse? You should consider getting a warehouse loan.

Here, we’ll go straight to the point and tell you the fundamentals of getting a warehouse loan and how a mortgage broker can speed up things for you.

How much can I borrow in a warehouse loan?

Warehouses are becoming popular choices for business owners looking for facilities and investors who want to venture into commercial real estate.

Getting your warehouse loan approved involves the building’s location, nature, and architecture. Here are some of the features you can get from a warehouse loan:

  • Loan up to 70% of the property’s value or get a full-valued loan using a residential property as loan security.
  • Borrow up to 75% of the property’s value and use it as a commercial showroom or storage unit (case-by-case basis)
  • Maximum loan term up to 20 years and interest-only term of five (5) years.
  • Low-doc warehouse loan options available
  • Avail of interest-only principal and interest payments on a case-by-case basis
  • Loan of over $5,000,000 depending on property value and some case-by-case scenarios.
  • Run a business in the warehouse (given that you can provide a business plan).

For your warehouse loan, Plan A Mortgage can provide suggestive funding approval. Speak with our specialist mortgage brokers on 1300 052 055 today!

How can a mortgage broker help?

Establishing a solid business plan with strong financial evidence is one way of asserting your strength as a borrower. Doing so maximises your chances of getting warehouse loan application approval.

Besides that, having a reliable mortgage broker to negotiate your terms will help you get the best deals with low-interest rates and optimal Loan Value Ratio (LVR). With it, you get more cash flow buffer that you can capitalise on for your business or kick off a stunning advertisement campaign for tenants.

But those are just the first half of your loan journey. The next step that mortgage brokers aim for is getting the best features to help you manage your loan repayments in the long run.

What do banks and lenders evaluate in my application?

Banks and non-bank lenders consider warehouses as standard commercial properties. That’s why they get approved faster than specialised commercial properties such as restaurants and service stations.

For three to ten-year lease agreements, commercial lenders will usually require you to have about a 1 to 1.4 times serviceability ratio. That is the amount of expected income over the estimated expenses, including interest.

Moreover, having a clean credit history isn’t essentially required. By providing a comprehensive explanation of how you arrived and resolved past credit issues and having a reliable mortgage broker, you can still find lenders who will approve your loan application.

Your bank and lender will also most likely want to ensure that you can meet the loan repayments if you only want to purchase the freehold (warehouse property and lot). That means you need to have an excellent asset position and loan security (residential property).

If you’re a business owner who’s interested in applying for a warehouse loan, here are a couple things banks and lenders usually look into:

  • Business Activity Statement (BAS), financial statements, tax portal printout from the Australian Taxation Office, and bank statements for the past few months.
  • A strong business plan with detailed market competition analysis, a business model, and cash flow forecasts.

For more information and a thorough discussion of your options, our mortgage brokers who specialise in warehouse loans are more than willing to help you out and increase your chances of getting approval.

How do banks and lenders value warehouses?

Most of the time, lenders will deploy specialist warehouse valuers to inspect your warehouse or similar industrial property.

They will likely examine the state of the roof, plumbing, and similar structural elements, including the property’s aesthetic and functional value. That’s because they will also consider how likely your warehouse can attract tenants and businesses.

Hence, if you want to get your warehouse loan approved quicker, consider factors such as distance from freeways, motorways, and transport links.

You should also check if there are shopping centres or businesses near the commercial property, as it will have an impact in the long run.

That’s why we recommend looking for warehouses near inner-city suburbs or central business districts if you want to attract tenants as soon as possible.

Fortunately, Plan A Mortgage has a full range of commercial warehouse lenders to choose from. We also have strong relationships with reliable banks and lenders that will help you maximise your chances of getting your ideal warehouse loan approved.

What are securities that I can use for my loan?

Development securities

  • Duly registered developed property first mortgage
  • General Security Agreement (GSA) of the security property’s owner’s rights and undertakings
  • Pre-sale deposits as needed
  • Directors’ guarantees or shareholder’s guarantees
  • Intellectual property and designs’ rights, including other relevant aspects to the development.

Investment securities

  • Duly registered security property first mortgage
  • General Security Agreement of security property’s investor’s rights and undertakings
  • Shareholders’ guarantee and/or directors’ guarantee

If you have problems and questions about the warehouse loan’s requirements, don’t hesitate to call our staff at 1300 052 055 and we’ll respond within the hour.

What should I look for in a commercial property?

Suppose you’re looking to buy a commercial loan as an investment. In that case, it’s best to consider the following factors, which we discussed previously:

Parking area and floor/lot area

More floor area means more room for productivity/storage. If you can also add or extend the current parking space, it would be highly beneficial for your future tenants and clients.

Vertical and horizontal clearance

Height clearance is the safe distance between the warehouse floor and ceiling or overhead obstructions such as lights, fans, and girders.

That said, having a high clearance and horizontal spread allows for smoother logistics and storage, especially when equipment is involved. Most of the time, warehouses have a vertical clearance of 30 to 35 feet.

Engineering certification certified copy

Warehouse vendors should be aware of the property’s structural integrity and engineering features. That said, they should give you a copy of the engineering certification that states the concrete floor’s load-bearing capacity, including the parking space.

Knowing the structure’s load capacity is crucial, especially if you consider the type of materials shipped, stored, and dispatched to and from the warehouse.

Warehouse loading dock

Tenants and investors would always look for warehouses with loading docks. Not only does it require tenants to install a separate dock, but it also streamlines the logistics in and around the warehouse.

Warehouse office space

Air-conditioned office space isn’t completely necessary for all warehouses. However, it’s a plus for investors and tenants, especially if the business needs it.

A warehouse’s dedicated office space should accommodate about five to ten percent (5-10%) of the total floor area. Beyond that, tenants might have less storage space and pay more rent than the space they’re using.

Warehouse security

Having security fences, surveillance cameras, high-impact resistant doors, and mechanically operated doors is crucial for your warehouse’s security.

Every day, tons of expensive materials get shipped and dispatched from the warehouse. That’s why a secure warehouse is highly sought after by tenants and businesses.

However, warehouses complete with security equipment usually require more maintenance and upkeep, so consider whether these fit your business needs before anything else.

Need expert help to qualify for a warehouse loan?

With a reliable mortgage broker that specialises in warehouse loan applications, you have more chances of establishing a sound case and get approved by your desired lender.

We at Plan A Mortage are professional commercial mortgage brokers with extensive experience in warehouse loan applications.

Call us at 1300 052 055 to know why we’re the best team in business loans and discuss your warehouse loan application needs.

Get smarter mortgage advice
by PLAN A Mortgage
When making big financial decisions, expert help can be invaluable.
Over 10+ years local experience
Negotiate on your behalf
Save our
time & money
Guide you from start to the end

Need expert help to qualify for a warehouse loan?

With a reliable mortgage broker that specialises in warehouse loan applications, you have more chances of establishing a sound case and get approved by your desired lender.

We at Plan A Mortage are professional commercial mortgage brokers with extensive experience in warehouse loan applications.

Call us at 1300 052 055 to know why we’re the best team in business loans and discuss your warehouse loan application needs.

It's simple when
we are doing the hard work for you

Call Now ButtonCall Plan A Mortgage