The most practical way to secure commercial loans for logistics

Purchasing a logistics hub represents a significant step forward for Queensland businesses looking at expanding business operations. Whether you're eyeing a strategic location in Brisbane, the Gold Coast, or regional Queensland, understanding your commercial finance options can make all the difference in securing the right property at the right price.

Understanding Commercial Property Finance for Logistics Hubs

When buying commercial property like a logistics hub, you'll typically need a substantial loan amount to cover the purchase price. Commercial property finance differs from residential mortgages in several key ways:

• Loan Structure: Commercial loans often feature more flexible loan terms tailored to business cash flow
• Interest Rate Options: Choose between variable interest rate and fixed interest rate structures
• Security Requirements: Most logistics hub purchases involve a secured Commercial Loan using the property as collateral

Logistics hubs command premium prices across Queensland, particularly in key transport corridors. Having access Commercial Loan options from banks and lenders across Australia gives you the flexibility to compare rates and terms that suit your business model.

Types of Commercial Loans for Industrial Property

When applying for a commercial loan to buy an industrial property, you'll encounter several financing structures:

Term Loans: Standard commercial finance with fixed repayment schedules over 5-25 years. These work well when you know exactly how much you need and prefer predictable payments.

Progressive Drawdown: Perfect if you're purchasing land and constructing a custom logistics facility. You'll only pay interest on funds as they're drawn down during construction phases.

Revolving Line of Credit: Offers flexibility for businesses that might need additional funds for buying new equipment or upgrading existing equipment after the property purchase.

Secured vs Unsecured Commercial Loans

Most logistics hub purchases involve secured Commercial Loan arrangements where the property serves as collateral. This security typically results in:

• Lower interest rates compared to unsecured options
• Higher loan amounts relative to your business's financial position
• Longer repayment terms
• Access to features like redraw facilities

While unsecured Commercial Loan options exist, they're rarely suitable for large property purchases due to lower borrowing limits and higher costs.

Flexible Repayment Options for Your Business

Commerce in the logistics sector often involves seasonal fluctuations or contract-based revenue. Modern commercial finance products recognise this with flexible repayment options:

• Interest-only periods: Reduce initial repayments while establishing operations
• Seasonal payment structures: Align repayments with your peak revenue periods
• Redraw facilities: Access additional funds from principal payments you've made
• Extra payment options: Reduce interest costs by paying more when cash flow allows

The Application Process for Commercial Property Finance

When buying commercial property, lenders will evaluate several factors:

1. Business Financial Performance: Recent profit and loss statements, cash flow projections
2. Property Valuation: Independent assessment of the logistics hub's value
3. Deposit Requirements: Typically 20-40% of the purchase price
4. Exit Strategy: How you plan to service the loan and potential future plans

A streamlined application process starts with gathering comprehensive financial documentation and having a clear business case for the property purchase.

Why Location Matters in Queensland

Queensland's logistics sector benefits from strategic positioning between major capital cities and key export ports. When you buy commercial land or existing facilities, consider:

• Proximity to major transport routes and ports
• Zoning regulations and expansion possibilities
• Local council development plans
• Access to skilled workforce

These factors influence both property values and your business's operational efficiency, affecting your ability to service commercial finance over time.

Working with Specialists

Commercial property transactions involve complex lending criteria that vary significantly between banks and non-bank lenders. Each institution has different:

• Risk assessment criteria
• Interest rate structures
• Loan features and flexibility
• Industry experience and understanding

Professional guidance helps identify lenders who understand the logistics sector and can structure finance that supports your business objectives rather than constraining them.

Purchasing a logistics hub represents a significant investment in your business's future. With the right commercial finance structure, you'll have the foundation to grow your operations while maintaining healthy cash flow for day-to-day operations and future opportunities.

Call one of our team or book an appointment at a time that works for you to discuss your commercial property finance options.