Commercial land loans can provide a fast cash flow solution for development opportunities. This commonly utilised source of commercial finance can support business clients requiring a facility to help complete a project. As one of Australia’s leading private lenders, Aquamore specialises in bridging loans for land. These are short-term loans for businesses that can secure land, quickly. Below, you’ll discover how your clients can secure funding to help enable business opportunities.
Land Loans in Australia Can Be Used to Secure Lucrative Development Opportunities
Loans for land purchase can enable businesses to acquire fast funding solutions. Land bridging loans (as they’re also known) are often sought as a short-term, flexible alternative. Find out more about how the process works.
Commercial Land Loan Rates
Aquamore provides loans from $300K to $3m. The loan rates, as well as terms and set-up costs will vary from lender to lender, and may include:
- Loan approval
- Valuations
- Legals
- Loan administration charge
- Account keeping fee
To discover more about our services, please refer to our guide on bridging loans to buy land.
How Aquamore Processes a Client’s Application for Land Loans
The loan application process works as follows:
- Assessment of a client’s financial situation
- Evaluation of the business’s credit history and use of funds
- Evaluation of repayment ability and exit plan
We also consider the:
- Suitability and security of the land through a property valuation
- Planning permission and DA requirements
Commercial Land Loan Advantages for Business Clients
Land loans in Australia can help business clients to realise opportunities. Here are some common benefits.
Quick Access to Funds
Aquamore’s commercial land loans are a fast way to acquire funding. With this type of loan, businesses can move quickly to secure a land-purchasing opportunity.
For example, if there’s an auction for land with a brief completion window, a bridging loan allows the borrower to move quickly to optimise their position in securing the deal.
Flexibility
Some types of loans can have restrictive repayment terms. An Aquamore land bridging loan offers more flexibility with our wide range of product options. Business clients can tailor the facility to meet their needs – which is particularly appreciated in a time-sensitive, or opportunistic situation.
Higher Loan-to-Value (LTV) Ratios
Land bridging loans have varying loan-to-value (LTV) ratios. This varies between lenders and is also affected by the client’s circumstances and corresponding loan parameters.
Secure Land That’s Otherwise Unaffordable
With this loan type, land that’s undeveloped or in need of refurbishment can become accessible, which is the appeal of a short-term commercial solution: it may provide opportunities to realise otherwise unattainable properties. Increasingly, private lending facilities are an attractive alternative to secure fast, flexible funding.
Assessing the Pros and Cons of a potential Land Loan
We’ve covered some common advantages. Conversely, potential drawbacks may include higher interest rates or borrowing costs versus other loan types, which correlates to the facilities ‘risk vs reward’ (otherwise known as opportunity cost).
A finance broker, preferably in conjunction with an accountant, is well-placed to provide guidance on which type of finance facility is most suitable for individual businesses’ situations and goals
What to Tell Your Clients About Vacant Land Loans
Having detailed conversations about the land loan process will allow your client to understand the:
- Concept (fast access to a financial solution)
- Requirements (application with credit checks)
- Benefits (secure land fast)
- Common uses (i.e. to secure undeveloped properties)
Aquamore is committed to delivering a fast, reliable, and short-term loan to advance business client’s objectives.
Get Land Bridging Loans With Competitive Rates
As one of Australia’s leading private lenders for land loans, Aquamore specialises in providing bespoke financial solutions. We offer flexible and fast loans to support business growth.
Our team is responsive, transparent and solution-oriented. Apply now for a commercial land loan.
For further advice, or if you have an enquiry, please contact us: lending@aquamore.com.au or +61 2 9258 8888.
