Commercial Property Finance
Commercial property finance tailored to your needs
Obtaining the right partner to provide you with commercial property finance can be the key to acquiring your own business premises or unlocking value in your currently owned commercial property.
Who Can We Help?
As one of South Africa’s largest providers of finance to the SME market, Merchant West is uniquely positioned to offer tailored and flexible commercial property finance solutions to qualifying clients. Our commercial property finance options are designed for clients looking to purchase or refinance the premises from which they operate or plan to operate their businesses. Whether you are seeking to buy a commercial property or raise capital for alternative business investments, our commercial property finance solutions are among the most flexible available.
Who Can We Help?
There are typically two scenarios where our commercial property finance is utilized:
- Purchase Properties Under Lease: Our commercial property finance solutions help clients buy properties they are currently leasing.
- Unlocking Cash from Property: Clients can access cash tied up in their commercial property assets through refinancing.
Our Commercial Property Finance Options
Flexible Financing Structures
Our commercial property finance solutions are designed with adaptability in mind, enabling clients to manage loan payments according to their unique financial situations. Our financing payment terms are based on three tiers:
- Align Financing with Cash Flow: Our commercial property finance options are designed to match the business’s cash flow, optimizing liquidity.
- Bullet Payments for Cash Flow Planning: Larger, lump-sum payments are scheduled at specific times to assist with cash flow planning (bullet payments).
Commercial Property Finance Terms
Our commercial property finance solutions provide flexible and comprehensive funding options. Here are the key terms and conditions for our commercial property finance plans:
- The property must already be a commercial or industrial building.
- We can lend up to 75% of the property’s value based on an independent appraisal.
- The main security for the loan will be a mortgage on the property.
- The financing plan can include a large payment of up to 50% of the loan amount due at the end of 5 years, with the entire loan to be repaid within 10 years.
- Payments, which include both interest and principal, can be made monthly or quarterly, depending on your preference.
- Payments will increase each year to account for inflation.
How do I find out more about Commercial Property Finance?
Simply complete our online enquiry form and one of our experts will be in touch.
Frequently Asked Questions
Yes, there is an option to extend the total payment period by an additional 60 months. However, this extension is subject to a 50% capital redemption within the initial 60-month period.
Merchant West offers to advance up to 75% of the value of an owner-occupied commercial property based on an independent valuation.
In addition to financing, clients can benefit from access to an approved panel of conveyancers, effectively reducing costs associated with bond registration for their commercial property transactions.
Our finance solutions are available for various types of commercial and industrial properties, including office buildings, retail spaces, warehouses, and manufacturing facilities.
Yes, clients can use the funds for other business investments or capital expenditures, provided the primary security is a commercial property.
Prepayment terms, including any potential penalties, will be outlined in the financing agreement. We offer flexible options to suit different client needs.
Clients will need to provide financial statements, property valuation reports, business plans, and other relevant documents to support their application.
Get in touch with us
Want answers to a pressing question about our Commercial Property Finance ? Fill in the form and we’ll get back to you shortly.
