Quick answer
To buy commercial property fast, a business can use a short-term private first mortgage over the shop, office or warehouse being bought, often with a second property added as security to cover the deposit and transfer duty. Because the property is assessed directly, with no formal valuation required, funding can line up with a tight settlement. The loan is then refinanced to a bank or repaid from a sale.
Key points
- Lets you meet a short settlement or win an off-market deal
- Security can be the property being bought, another property, or both
- Budget for the deposit, the balance, transfer duty and any GST
- The usual exit is a bank refinance once you own and occupy the building
- Amounts
- $20k – $5m
- Term
- 1 to 24 months
- Assessment
- No formal valuation required
- Speed
- 24–48 hours possible once documents are in
Good commercial property rarely waits. The vendor wants a short settlement, an agent has an off-market lead for one more day, or the building you have leased for years is suddenly for sale and the landlord has another buyer circling. A bank’s commercial credit team may be thorough, but thorough and fast are not the same thing.
Private, property-secured finance is built for that gap. It lets a business secure the building now and arrange long-term bank funding once the keys are in hand.
How can a business buy commercial property quickly?
The quickest path combines three things: security the lender can assess without delay, a deposit or extra equity to sit alongside the purchase, and an exit that is already in view.
Here is how it usually comes together:
- Security. The lender takes a first mortgage over the building being bought. If the purchase needs more support, a second property, such as the owners’ home or an investment unit, is added.
- Assessment. The property is assessed directly, with no formal valuation required, so there is no wait for a report and no conservative figure that undercuts the deal.
- Documents. ID, entity details, the contract of sale, any leases and evidence of the exit.
- Settlement. The loan funds through electronic settlement on the contract date.
Funding is possible within 24–48 hours for up to $5m once documents are in. For a closer look at the product itself, see our commercial property first mortgage page.
What do I actually need to fund on a commercial purchase?
The price is only part of the cheque. Map every line before you sign.
| Cost | Who pays and when | Note |
|---|---|---|
| Deposit | Buyer, at exchange | Often the first cash test; can come from equity in another property |
| Balance of price | Buyer, at settlement | The main loan amount |
| Transfer duty | Buyer; in NSW by settlement or three months after contract, whichever is earlier | Varies by state; your conveyancer calculates it |
| GST | Depends on whether the sale is a going concern | Confirm with your accountant before exchange |
| Legal and registry costs | Buyer, at settlement | Both sides’ solicitors plus lodgement fees |
| Assessment fee | Borrower | Varies per loan, shown on the Letter of Offer |
GST deserves a careful look. The ATO says a sale of leased commercial premises can be GST-free as a going concern when payment is made, the buyer is registered for GST (or required to be), both parties agree in writing that it is a going concern, the seller supplies everything needed to keep the business going, and the seller carries on that business until the day of sale. If those boxes are not ticked, GST may form part of the price, and your accountant should plan how that is funded. Note also that the ATO’s GST withholding at settlement does not apply to commercial property.
Should I use the purchased property, another property, or both?
That depends on the gap between the price and the cash you have.
- Purchased property only. Works when you have a solid deposit and the building is easy to assess: a well-located shop, office or industrial unit.
- Purchased property plus another title. The most common pattern. Equity in a second property supports the deposit, the duty, or both, so you are not draining working capital.
- Another property only. Useful when the bank is funding the purchase but cannot move by the deposit date. A second mortgage over another property covers the deposit, and the bank completes the rest.
Lending across two or more titles is explained on multiple properties as security, and our comparison of residential vs commercial security shows how each type is weighed.
What does a fast commercial purchase look like?
Illustrative example: a Sunshine Coast physiotherapy practice has leased the same shopfront for eight years. The landlord offers it to them at $1.1m with a 30-day settlement before listing it publicly. Their bank says eight weeks. The practice owners hold $150k in cash and own their home worth around $1.3m with $400k owing. A private first mortgage of $850k over the shopfront, supported by a second mortgage of $200k over their home, funds the balance, the duty and costs. Interest is capitalised for 12 months. Nine months later, with financials that now show the practice owning its premises, the bank refinances the shopfront and the home security is released.
The building was never at risk, and the bank still ended up with the long-term loan. The private finance simply covered the window the bank could not.
What slows a commercial purchase down?
Most delays have nothing to do with the property itself. They come from paperwork that turns up late.
- Leases. If the building is tenanted, the lender wants the current lease, any options and the rent position. A missing variation or an unsigned renewal can stall things for days.
- Entity documents. A trust deed that cannot be found, or a company with an outdated officeholder record, takes time to fix.
- Unclear deposit source. Know exactly where the deposit and duty are coming from before you exchange.
- Late solicitor instructions. Engage your solicitor the day you agree on price, not the day before settlement.
Have these ready and the private side of the deal is rarely the slow part.
What exit do lenders expect on a commercial purchase?
Every private loan needs a clear exit, and with commercial property it is usually one of these:
- Bank refinance, once the purchase has settled and the business can present financials that include the new premises.
- Sale of another property, such as an investment unit, to reduce or clear the loan.
- Re-leasing a vacant building, then refinancing on the strength of the new tenant.
A lender will want to see the first step of that exit already moving: a bank conversation started, a property listed, a lease in negotiation. Our guide on the commercial property purchase timeline sets out what to line up and when.
If you already have a contract and a deadline, share the deal with a specialist today.
At a glance
- Who it suits: businesses and investors buying shops, offices, warehouses or factories on a tight timeline
- Security: the purchased property, another property, or both
- Pricing: set on each deal’s security, LVR, term and exit; we aim for the sharpest price your situation allows
- Repayments: interest can be prepaid or capitalised, so there may be no monthly repayments during the term
- Lender: our lending partner fundU, a direct private lender
Got a contract and a deadline? See if you qualify
The first step is a short enquiry, and it does not trigger a credit check. A real specialist reads the deal, the property and the timeline, and your details are not passed around to a queue of other lenders.
Tell us the price, the settlement date, what you own and what is owing on it. Precise answers up front mean the answer you get back is one you can rely on, first time. Check your eligibility in 60 seconds.
Frequently asked questions
Can a private lender fund the whole purchase price?
Usually not on the purchased property alone. Most buyers contribute a deposit or add another property as security so the total borrowing sits comfortably within the equity across both titles. A specialist can map out how the numbers fall once they know the price and what else you own.
Who pays transfer duty on a commercial purchase?
The buyer. In NSW, for example, Revenue NSW says the purchaser pays transfer duty, and it is due by the earlier of settlement or three months after the contract is signed. Other states have their own rules and timing, so check with your conveyancer.
Is GST payable when I buy a leased commercial building?
It depends. The ATO says a sale can be GST-free as a going concern if conditions are met, including that the buyer is registered for GST and both parties agree in writing that it is a going concern. Have your accountant confirm the GST position before you sign.
How long can I keep the private loan?
A private first mortgage runs for 1 to 24 months. Most commercial buyers use that window to settle, move in or stabilise the lease, then refinance to a bank on a longer facility.
Can I buy through my company or trust?
Yes. A company or trust can be the buyer and borrower, with directors usually giving personal guarantees. Where a trust buys, the trust deed must allow the trustee to borrow and give security, so have your solicitor check it early.