28th September 2026 | Murray

Buying a retail shopfront requires a different lending approach than residential property. Most lenders will assess the purchase based on the business viability, rental income potential, and your capacity to service the debt, not just the property value. The loan amount typically ranges from 60% to 70% of the purchase price, meaning you'll need a deposit of 30% to 40% plus settlement costs.
In Bulimba, where Oxford Street retail has seen consistent tenant demand from hospitality and professional services, lenders view these properties more favourably than suburban strip retail with vacancy risk. That doesn't mean approval is automatic. You'll still need to demonstrate how the property will generate income, whether through lease agreements or your own business occupancy.
A secured Business Loan uses the retail property itself as collateral, which gives you access to higher loan amounts and lower interest rates. An unsecured business loan doesn't require property security but comes with stricter serviceability requirements, lower borrowing limits, and higher rates. For a retail shopfront purchase, secured lending is almost always the only viable option unless you're buying a very low-value lease or fitout only.
Consider a buyer purchasing a retail unit on Oxford Street at the current median for commercial shopfronts in the area. With a 65% loan-to-value ratio, they'd need to contribute 35% from their own resources, which could come from business savings, equity in an existing property, or a combination. The lender will assess rental income if the property is tenanted, or projected income if you're occupying it yourself.
Lenders want to see a cashflow forecast that demonstrates the property will generate enough income to cover the loan repayments, plus a buffer. If you're buying the property to occupy with your own business, they'll assess your business financial statements, typically the last two years of tax returns and profit-and-loss reports. If the property is tenanted, they'll review the lease agreement, tenant history, and rental yield.
Your business credit score also plays a role. A clean credit history with no defaults or court judgments will speed up approval. If your business is less than two years old, some lenders will decline outright. Others will consider the application if you have strong personal financials or can demonstrate industry experience. Expect to provide a detailed business plan that outlines how the property fits into your operations or investment strategy.
Most commercial loans for retail property offer both fixed and variable interest rate options. A fixed rate locks in your repayments for a set period, usually one to five years, which helps with budgeting and protects you from rate increases. A variable interest rate moves with the market, which means repayments can rise or fall. Variable loans usually come with redraw facilities and the option to make extra repayments without penalty.
You can also split the loan between fixed and variable. In a scenario where a buyer secures a loan of $500,000 to purchase a retail shopfront, they might fix $300,000 for three years to protect against rate rises, and leave $200,000 on a variable rate with redraw access. This structure provides certainty on the majority of the debt while maintaining flexible repayment options for surplus cash.
Commercial property loans typically have terms between 15 and 30 years, though shorter terms are common if the loan is structured for business expansion rather than long-term hold. Interest-only periods of one to five years are available, which can assist with cash flow in the early stages. After the interest-only period ends, the loan reverts to principal and interest repayments.
Some lenders offer progressive drawdown if you're purchasing a property that requires fitout or renovation. This means the loan is drawn in stages as work is completed, rather than in a lump sum at settlement. A revolving line of credit or business overdraft can be attached to the loan to cover working capital needs, though this will be assessed separately based on your business's cash flow and debt service coverage ratio.
Beyond the deposit, you'll need to budget for stamp duty, legal fees, building and pest inspections, and lender establishment fees. Stamp duty on commercial property in Queensland is calculated on a sliding scale and can be significant. Legal costs for commercial contracts are higher than residential due to lease reviews, zoning checks, and title searches. Expect to allocate an additional 5% to 7% of the purchase price for these costs.
In our experience, buyers underestimate how much working capital is needed after settlement. If you're purchasing the property to operate your own business, you'll also need funds for fit out, stock, signage, and at least three months of operating expenses. Lenders won't finance these costs as part of the property loan unless you structure a separate working capital facility alongside the purchase.
How Bulimba's Retail Market Affects Lending
Bulimba's retail precinct, particularly along Oxford Street, is considered a strong location by most lenders due to consistent foot traffic, established tenant demand, and the suburb's demographics. Properties in this area typically attract owner-occupiers in hospitality, health, or professional services, as well as investors holding tenanted assets. Lenders are more willing to offer favorable terms when the property is in a recognized commercial zone with low vacancy rates.
That said, lenders will still assess the individual property. A shopfront with a long-term tenant on a secure lease will be viewed more favourably than a vacant property requiring tenant search. If you're buying vacant with the intention to occupy, the lender will place more weight on your business financials and your ability to generate income from that locatio
Commercial lending isn't standardized the way home loans are. Different lenders have different risk appetites, and some specialize in retail property while others avoid it entirely. A mortgage broker who works across multiple commercial lenders can structure the application to match your situation and present it to the lenders most likely to approve. This saves time and increases your chances of securing terms that suit your business.
If you're purchasing in Bulimba or the surrounding areas, working with a finance broker in Bulimba who understands the local market gives you an advantage. They'll know which lenders view the area favorably and how to position your application for approval.
Before you sign a contract, confirm your borrowing capacity and loan structure with your lender or broker. Commercial property purchases move quickly, and finance clauses are often shorter than residential contracts. You don't want to be scrambling for documentation or discovering serviceability issues after you've committed.
Make sure the loan structure aligns with your business strategy. If you're buying the property to occupy and plan to sell within five years, an interest-only loan with no break costs might make more sense than a long-term principal and interest loan. If you're holding the property as an investment, consider whether the rental income will cover repayments from day one or whether you'll need to top up from business cash flow.
Call one of our team or book an appointment at a time that works for you. We'll walk through your borrowing capacity, compare loan options from banks and lenders across Australia, and structure the finance to support your business acquisition.
Banks can only offer their own products and lending rules. We work with a broad panel of major banks, non-bank and specialist lenders, giving us the ability to compare a wide range of finance options and structures to find the right fit for your circumstances.
We also look beyond the individual loan. Where appropriate, we can help diversify your lending across different lenders and structures, reducing concentration risk and helping you maintain greater flexibility and control over your business and personal assets.
The right structure depends on what you're buying, how the asset will be used, your business cash flow and how long you intend to keep it.
Typically for most businesses a Chattel Mortgage or Commercial Loan is the recommended finance product, this is because the product gives the business full control and ownership of the asset with all the claimable benefits available to the business. We arrange finance for business cars, utes, trucks, trailers, machinery, plant and other equipment across a wide range of lenders. Our process is to obtain our clients highly competitive rates and more importantly the right structure and agreement that does not create risky charges from lenders. We consider the overall finance structure, including loan term, deposit, balloon or residual, repayment requirements and lender security, so the finance works with your business rather than unnecessarily tying up cash or other assets.
We can also arrange finance for new and used assets purchased through dealers, suppliers or, with selected lenders, private sellers.
In most cases, yes.
Established businesses are generally eligible for streamlined or reduced documentation asset finance depending on the amount being borrowed, the asset, your ABN and GST history, credit profile and the lender's individual policy.
Lenders however, are not the same, they have different rules when considering the above, it's important to have representation from a good finance broker who knows the landscapre and can workshop your position if necessary before applying anywhere.
We work with a wide range of business asset finance lenders, each with different credit policies and documentation requirements. We can assess your position first and identify lenders that are more likely to suit your circumstances before an application is submitted.
This can be particularly useful when you need to purchase a vehicle or equipment quickly without going through a lengthy full financial assessment.
It depends on what you're trying to fund.
A business overdraft or line of credit can be useful for managing ongoing cash flow fluctuations because funds can generally be accessed quickly, repaid and used again within the approved limit. A term business loan may be more appropriate when you need a defined amount for a particular purpose or investment.
We look at how cash actually moves through your business, what the funding is being used for and how quickly it is likely to be repaid before recommending a structure.
The objective isn't simply to obtain more debt, it's to put the right funding in place so your business has access to capital when it needs it without unnecessarily restricting future growth or putting assets at risk.
Commercial property lending varies considerably between lenders and depends on the type of property, its location and use, your deposit or available equity, lease arrangements and the financial strength of the borrowing business or investment entity.
We arrange commercial property finance for business premises, industrial property, warehouses, offices, retail and investment properties through major banks and specialist commercial lenders.
For business owners, we also look at how the purchase fits alongside your existing business lending, property debt and available security. Structuring this correctly can be just as important as the interest rate, particularly when you want to preserve equity and borrowing capacity for future opportunities.
Generally, yes.
An SMSF can, subject to superannuation rules and the correct legal structure, borrow to acquire certain commercial property. For business owners this may include premises that are subsequently leased to their operating business under appropriate commercial arrangements.
SMSF lending is a specialist area and lender policies can vary considerably. We compare SMSF commercial property lenders and work alongside your accountant, financial adviser and solicitor to coordinate the lending component of the purchase.
Because the SMSF, borrowing structure, property and lease arrangements all need to work together, it's important to investigate the finance position before committing to a property.
Yes. This is one of the advantages of working with Premium Finance Group Australia.
Business owners often have income spread across salaries, company profits, dividends, trusts or other entities, which means their financial position doesn't always fit neatly into a standard home loan application.
We understand business financials and can consider lenders with different approaches to assessing self employed income for home loans, investment property finance and refinancing.
More importantly, we can look at your business and personal lending together. That helps avoid making a decision on a home, investment or business loan today that could unnecessarily restrict your borrowing capacity, security position or options later.
It costs absolutely nothing to speak with us.
In most cases, we're paid by the lender, which means our services will not cost you anything directly. We'll always explain how we're remunerated so you can make an informed decision.
Absolutely. Refinancing can help you secure a lower interest rate, change repayment obligations, access equity in property, divesify debt risk and help protect your assets when there is business debt. We access loan options from banks and lenders across Australia and provide you options and recomendations to consider.
Real experiences from Australian businesses we’ve helped finance and grow.