What does a commercial finance broker do in Australia? A commercial finance broker helps businesses, investors and other borrowers understand and compare commercial finance options, prepare an application and navigate lender requirements through to settlement.
At CBM Mortgages, our commercial lending service helps clients assess funding options for commercial property, business purposes, equipment and other eligible commercial needs. Rather than approaching a single lender, we can consider suitable options from the lenders available through our panel.
Commercial finance can be more complex than a standard residential home loan. Lender appetite, security, cash flow, business performance, lease arrangements, asset type and the purpose of the finance can all affect how an application is assessed.
What does a commercial finance broker do?
A commercial finance broker works with a borrower to understand the proposed transaction and identify finance options that may suit the borrower’s circumstances and objectives.
Depending on the transaction, this can include:
- understanding the purpose of the finance;
- reviewing the borrower’s financial position;
- considering the proposed security or commercial asset;
- reviewing business or rental cash flow where relevant;
- comparing commercial lending options from the broker’s lender panel;
- explaining relevant rates, fees, terms and conditions;
- helping prepare supporting documents;
- lodging and managing the finance application;
- communicating with the lender during assessment; and
- helping coordinate the process through to settlement.
A commercial finance broker cannot guarantee approval. The final decision remains with the lender and is subject to its credit policy, assessment requirements, valuation and approval process.
What is the difference between a commercial loan and a business loan?
The terms are sometimes used interchangeably, but the purpose of the finance can be different.
Commercial property finance commonly relates to purchasing, refinancing or funding a property used for commercial or investment purposes, such as an office, warehouse, retail premises or other commercial asset.
Business finance may be used for purposes such as:
- working capital;
- business expansion;
- equipment or vehicles;
- stock or inventory;
- cash-flow requirements;
- business acquisition; or
- other eligible business purposes.
The appropriate finance structure depends on the borrower, purpose, security and lender requirements rather than simply whether the applicant is self-employed or earning a PAYG salary.
How does a commercial finance broker help with an application?
The exact process varies according to the transaction, but it will generally begin by understanding what the borrower is trying to finance and how the proposed debt is expected to be repaid.
1. Understand the transaction
The broker establishes the finance purpose, requested amount, borrower structure, proposed security and timing.
2. Review financial information
The information required depends on the application. It may include business financial statements, tax returns, bank statements, lease information, details of existing liabilities, income evidence and information about the proposed asset.
3. Consider lender policy
Commercial lenders can have different approaches to particular industries, property types, borrower structures and finance purposes.
A broker can identify lenders whose current credit policies appear more closely aligned with the transaction. This does not guarantee approval.
4. Compare finance options
The comparison may include interest rates, establishment and ongoing fees, loan term, repayment structure, security requirements, loan-to-value ratio requirements and other conditions.
5. Prepare and lodge the application
The broker prepares the application and supporting information for the selected lender and assists with further information requests during assessment.
6. Manage the process through to settlement
If the application is approved, the broker can help coordinate communication between the borrower, lender and relevant professional advisers through to settlement.
Commercial finance broker versus going directly to a bank
Approaching a bank directly can be appropriate when that bank’s product and policy already suit the transaction.
The potential benefit of using a commercial finance broker is the ability to consider options from more than one lender.
| Factor | Commercial finance broker | Going directly to one bank |
|---|---|---|
| Lender choice | Can consider suitable lenders available through the broker’s panel | Limited to that institution’s available products |
| Policy comparison | Can compare relevant policy differences between panel lenders | Assessment follows that bank’s policy |
| Application management | Broker can prepare, lodge and follow the application | Application managed directly with the bank |
| Commercial experience | Can apply experience across different lenders and transactions | Detailed knowledge of that bank’s own commercial lending |
How do lenders assess commercial finance?
There is no single assessment method that applies to every commercial finance application.
Depending on the transaction and lender, the assessment may consider:
- business profitability and cash flow;
- rental or lease income;
- existing debts and financial commitments;
- the borrower’s contribution or available equity;
- the type and value of the security;
- the property’s location and marketability;
- the strength and remaining term of a lease;
- industry and business risk;
- the borrower and ownership structure; and
- the proposed loan term and repayment structure.
What are LVR and DSCR?
Loan-to-value ratio (LVR) compares the loan amount with the value of the property or asset used as security.
Debt service coverage ratio (DSCR) is one way some commercial lenders may assess whether available income or cash flow provides sufficient coverage for debt commitments.
There is no single LVR or DSCR threshold that applies across all Australian commercial lenders. The calculation method and acceptable position can vary by lender, borrower, property, industry and transaction.
This is one reason commercial transactions can benefit from comparing lender policies rather than assuming that a result from one institution will be the same across the market.
What types of finance can a commercial finance broker arrange?
The available products depend on the transaction and lenders on the broker’s panel. Commercial finance can include:
- commercial property loans;
- business loans;
- working-capital facilities;
- equipment and asset finance;
- commercial property refinancing;
- business acquisition finance;
- development or construction-related commercial finance where appropriate; and
- other specialist commercial funding.
Not every lender or product will suit every borrower or transaction.
Can PAYG borrowers use commercial property finance?
Commercial property finance is not limited to self-employed business owners.
A PAYG borrower may, for example, purchase a commercial investment property. The lender will assess the transaction according to its commercial credit policy, which may consider personal income, rental income, lease arrangements, liabilities, security and other factors.
Similarly, a business purchasing premises for its own occupation may be assessed differently from an investor buying a property to lease to another business.
What loan terms and deposits apply to commercial property finance?
There is no universal commercial property loan term or deposit requirement.
The amount a lender may be prepared to lend can depend on the property type, location, borrower, lease arrangements, finance purpose, repayment capacity and the lender’s current risk appetite.
Some transactions may require materially more borrower equity than a standard residential home loan. Loan terms and repayment structures can also differ considerably between lenders and transactions.
For that reason, broad statements such as “commercial property always requires a 20% deposit” should not be treated as a lending rule.
Does commercial lending have the same consumer protections as a home loan?
Not necessarily.
Australia’s consumer credit laws apply differently depending on the purpose and structure of the credit.
Credit that is wholly or predominantly for business purposes, or certain non-residential investment purposes, may sit outside the National Credit Code. The exact position depends on the transaction, so borrowers should obtain appropriate legal, financial and tax advice where necessary.
When might a commercial finance broker be useful?
A commercial finance broker may be useful when:
- you want to compare more than one lender;
- you are purchasing or refinancing commercial property;
- you need finance for business expansion or working capital;
- you are funding equipment or another business asset;
- your business or ownership structure is more complex;
- you are unsure which lenders consider your type of transaction;
- one lender has declined the application and you want to understand whether this reflects that lender’s policy or a broader issue; or
- you want help preparing and managing the finance application.
A previous decline does not mean another lender will approve the application. The circumstances and reasons for the decline need to be understood before making another application.
Why use CBM Mortgages for commercial finance?
CBM Mortgages works with business owners, investors and other borrowers seeking commercial and business finance.
Our role is to understand the transaction, review the available information, consider suitable lenders from our panel and help manage the application process.
The aim is not simply to obtain a loan. It is to identify a commercial finance structure that is appropriate for the borrower’s purpose and financial circumstances, subject to lender assessment and approval.
Frequently asked questions
What does a commercial finance broker do in Australia?
A commercial finance broker helps borrowers understand and compare commercial lending options from the broker’s lender panel, prepare supporting information, lodge the application and manage communication with the lender through assessment and settlement.
How is using a commercial finance broker different from approaching a bank directly?
A bank can assess products available from that institution. A commercial finance broker can consider suitable options from multiple lenders available through the broker’s panel and compare relevant rates, fees, structures and credit policies.
Do I need to be self-employed to get a commercial property loan?
No. Commercial property finance can also be available to PAYG borrowers and investors. Eligibility depends on the transaction, borrower, security, income, lease arrangements and lender policy.
How much deposit do I need for a commercial property loan?
There is no single deposit requirement for all commercial property loans. The available LVR can vary according to the property type, location, borrower, lease, loan purpose and lender policy. A broker can help assess the likely requirements for a particular transaction.
Can a commercial finance broker help after a bank declines my application?
Potentially. A broker can review why the application was declined and whether another lender’s policy may assess the transaction differently. A previous decline does not mean another lender will approve the application, so the underlying issue should be understood before applying again.
Looking for commercial finance?
CBM Mortgages can help you assess commercial property, business and asset finance options and compare suitable lenders from our panel.
Disclaimer: This article provides general information only and does not constitute personal financial, legal, tax or credit advice. Commercial lending policies, rates, fees, security requirements and eligibility criteria vary between lenders and can change. Any finance application is subject to lender assessment and approval. Consider obtaining appropriate professional advice for your circumstances.
Written by Craig McDonald. Updated November 2026.
