A commercial finance broker helps business owners and investors arrange loans secured by commercial property or used for business purposes. They work out what the deal needs, compare lenders whose policy fits the property type and borrower, and prepare an application that answers the lender’s questions upfront. They then coordinate the valuation, legal work and lender conditions through to settlement.
Commercial lending works differently from home lending. Lenders put more weight on the property’s income and lease, the type and location of the property, the borrower’s structure and the business’s cash flow. Policies vary widely between lenders, which is where a broker’s comparison and preparation can save time and avoid a poor fit. All loans remain subject to the lender’s criteria and approval.
What loans does a commercial finance broker cover?
At NewGen, commercial finance covers:
- Owner-occupied commercial property: business owners buying the premises they operate from
- Commercial investment property: investors buying income-producing property such as shops, offices or warehouses
- Commercial refinance: businesses and investors whose current loan terms no longer suit
- Mixed-use property: buildings that combine commercial and residential parts
- Business-purpose lending secured by property: where commercial property supports funding for the business
We also help SMSF trustees with commercial property loans, covered in our SMSF commercial property loan guide. For the wider framework on buying and refinancing in Sydney, see our commercial property finance guide.
How does a commercial finance broker work, step by step?
1. Understand the deal and your goals
The broker starts with the property, the purchase price or current loan, lease details, your business financials and what you are trying to achieve. A purchase, a refinance and a cash release each need a different approach.
2. Check the numbers
They review whether lease income or business cash flow can support the loan under lender assessment, how much deposit or equity you have, and which security is available.
3. Compare lenders by policy fit
Commercial lenders differ on property types, locations, loan-to-value ratios, lease requirements, loan terms and covenants. The broker shortlists lenders likely to accept the deal and explains the trade-offs between them. Our commercial loan rates guide explains why pricing comparisons go beyond the headline rate.
4. Prepare and lodge the application
The broker packages the financials, property information and a clear explanation of the deal, then manages lender questions.
5. Manage valuation, approval and conditions
Commercial valuations, legal reviews and lender conditions often take longer than residential deals. The broker keeps these moving and tells you early if something changes.
6. Coordinate settlement
They work with your solicitor, the lender and other parties to complete settlement, then review the loan periodically as rates and your plans change.
What does a commercial finance broker need from you?
Expect to provide:
- The last two years of business financial statements and tax returns
- Recent business bank statements
- Details of all business and personal debts
- Property details: address, type, size and lease details if tenanted
- The contract of sale, or current loan statements if refinancing
- Your structure: company, trust, partnership or sole trader, plus ID for directors or trustees
business.gov.au has a useful overview of what lenders typically look for when you apply for business finance (business.gov.au). Deposit and LVR expectations are covered in our guide to commercial property loan deposits and LVR.
How is a commercial finance broker paid?
Many commercial finance brokers are paid a commission by the lender when the loan settles. Some also charge the borrower a fee, especially on complex or larger deals. The arrangement differs between brokers and lenders, so ask for it in writing before you engage anyone.
Loans mainly for business or commercial investment purposes generally sit outside the consumer credit rules in the National Consumer Credit Protection Act 2009 (legislation.gov.au), including the responsible lending obligations ASIC oversees for consumer credit (ASIC). That makes it even more important to ask how your broker is paid and why they recommend a particular lender.
When do you need a commercial finance broker?
A broker is most useful when:
- the property type, location or lease is non-standard
- your business income is strong but complex to present
- you are refinancing and want to test the wider market
- your bank has declined or offered terms that don’t suit
- the settlement date is tight and the process needs active management
Rate movements are another trigger. The RBA lifted the cash rate target to 4.60% on 30 September 2026 (RBA), and many commercial loans are on variable rates, so it can be a good time to check how your current loan compares.
Which option suits you: broker, direct or accountant referral?
| Option | What you get | Strengths | Limitations |
|---|---|---|---|
| Commercial finance broker | Lender comparison, application preparation and deal management | Access to several lenders’ policies; one point of coordination | Panel may not include every lender; ask how they are paid |
| Going direct to a lender | One lender’s assessment and products | Can suit an existing relationship and a straightforward deal | No comparison; if policy doesn’t fit, you start again |
| Accountant referral | Your accountant introduces you to a broker or lender | The accountant knows your financials and structure | The referral partner’s panel and fees still need checking |
Your accountant remains essential in every path. They prepare the financials lenders rely on and advise on tax and structure, which a broker doesn’t do.
Why does preparation matter so much in commercial lending?
Commercial lenders often ask more questions than residential lenders, and each round of questions can add time. A clear summary of the deal, complete financials, lease documents and an explanation of any unusual items can reduce back-and-forth and help you understand your options sooner.
What mistakes should you avoid when using a broker?
- Not asking how the broker is paid. Commission and fees should be clear upfront.
- Comparing on rate alone. Fees, term, covenants and review conditions matter too.
- Signing a contract before checking finance. Leave time for valuation and lender conditions.
- Bringing your solicitor in late. Legal review often sets the pace of commercial deals.
To talk through a commercial purchase or refinance, see our commercial loans page.