For many business owners, buying commercial property through an SME can be a practical way to secure their premises, support long-term growth and bring more certainty to their costs.
While traditional lenders have become more selective, that hasn’t closed the door on options. A commercial property loan can still be achievable for entities, especially when the structure, income and purpose are assessed as part of the full picture, not a checklist.
This guide will walk you through the basics of buying commercial property through an SME, why business owners choose this path, and what lenders actually look for when assessing a commercial property loan.
Why some business owners buy commercial property through an SME
Owning the premises you operate from
Rather than continuing to lease, some businesses choose to buy the property they trade from. This can provide certainty over location and occupancy costs, and reduce the risk of disruption if a lease changes or ends.
Supporting the business, not draining it
When property is held through a company or trust, it can support the broader business structure. Equity held in the property may be used to manage cash flow, cover operating costs or consolidate existing business debts, helping keep working capital where it’s needed most.
Potential tax efficiencies
Buying commercial property through a company or trust can offer potential tax efficiencies, depending on how the structure is set up. For some business owners, this may help with managing expenses, cash flow and long-term planning. Because tax outcomes vary based on individual circumstances, independent tax advice is essential to understand what structure is appropriate.
Separation of business and property ownership
Separating the operating business from the entity that owns the property can provide flexibility and an added layer of protection. In some structures, the property-owning entity leases the premises back to the trading business, allowing the business to pay rent for the space it occupies. This can support clearer financial separation between business operations and property ownership, while aligning the property with long-term asset planning rather than day-to-day trading risk.
How SMSF purchases differ
SMSF commercial property purchases follow a different pathway. While an SMSF can own commercial property, it doesn’t allow equity release in the same way as a standard business owner commercial property loan. The focus is long-term asset ownership rather than accessing funds.
Why structure affects servicing
Some business owners don’t fit traditional servicing models when assessed in their personal name. Buying through a company, trust or SMSF can change how servicing is assessed.
- Personal income may not reflect the true strength of the position.
- Business cash flow can remain within the business to support operations.
- With SMSF loans, servicing is typically based on rental income and super contributions rather than personal income.
Why non-bank lenders suit many business owner commercial property loans
A broader view of the full scenario
Non-bank lenders like MA Money assess the full scenario, not just a standard checklist. That includes business income, the property itself and how the loan will be used, which can suit business owners buying commercial property through an SME.
For standard commercial property loans, MA Money offers more flexibility around income and documentation.* Depending on the situation, this may include Light Doc, Lease Doc or Alt Doc options, or Full Doc with as little as one year of financials. This can work well for business owners whose income doesn’t follow a traditional PAYG pattern or varies over time.
*This flexibility applies to regular commercial property loans, not SMSF loans, which are assessed differently.
Built for real business needs
Since commercial property loans often support growth, cash flow or long-term planning, non-bank lenders are built to assess real business needs. When circumstances aren’t standard, borrowers are more likely to receive a clear, considered response based on their actual situation rather than a quick no.
What actually matters in a non-bank commercial mortgage application
Non-bank lenders assess the full scenario, not individual pieces in isolation.
- The structure: Companies, trusts and SMSFs are standard ownership structures for non-bank lenders and are assessed as part of everyday commercial lending.
- The property: Property type, location and use matter. Industrial, office and retail properties are assessed based on demand and how they fit the overall scenario.
- The income: Lenders look at where income comes from and how consistent it is, such as business or rental income. It doesn’t need to be perfect to be workable.
- The loan purpose: How the loan will be used is just as important. Non-bank lenders are often flexible when the purpose supports real business needs, including growth, cash flow or long-term planning.
How brokers help move things forward
Brokers help pull the full picture together early. By workshopping your individual scenario with us upfront, your broker can obtain clear guidance before submitting your loan documents. This gives business owners like you confidence and direction from the outset.
Finding the right commercial property loan for your business
Buying commercial property through an SME can open up practical pathways for business owners whose income, structure or plans don’t fit a standard approach. When the full scenario is assessed, non-bank lenders can often provide clearer outcomes built around real business needs.
With the right broker support, business owners can get early clarity on what’s workable and move forward with confidence, securing a commercial property loan that fits how the business operates today and supports where it’s headed next.
This article does not constitute financial, tax, or legal advice. It does not take into account your personal objectives, financial situation, or needs. You should seek independent advice from a licenced professional before making any financial decisions. Applications for credit are subject to eligibility and lending criteria. Fees, charges, T&Cs apply (available on request). MA Money Financial Services Pty Ltd ACN 639 174 315 Australian Credit Licence 522267.
