Updated 7 November 2026 (Australia/Sydney).
Buying commercial premises can affect both a business’s finances and its day-to-day operations. Before comparing finance, clarify whether the property will house your business or be leased to someone else. Then document how repayments and ownership costs would be met without leaving the business short of operating cash.
Separate the property decision from the loan decision
For premises your business will occupy, consider access for customers and deliveries, usable space, fit-out requirements and room to grow. Check zoning and the approvals needed for the intended use. A property that looks affordable may still be unsuitable for your operations. Business.gov.au recommends defining these requirements before choosing a location. (business.gov.au: Choose your business location)
For a tenanted purchase, ask your solicitor to review the lease and explain the obligations you would inherit. Put questions about lease expiry, maintenance, outgoings and any incentive arrangements on the due-diligence list. Do not treat a marketing brochure as a substitute for reviewing the actual documents.
Build a complete funding picture
Business.gov.au recommends reviewing income, expenses, debts and cash flow before seeking a business loan. Prepare a current business plan and a forecast that shows how the proposed purchase fits. Be clear about the cash contribution available, potential security and whether a guarantor would be involved. (business.gov.au: Apply for a business loan)
Prepare two budgets: one for settlement and one for ongoing ownership. The first should allow for the purchase contribution, professional work, due diligence and fit-out. The second should show loan payments alongside operating expenses. Keep a separate line for a reserve rather than assuming every available dollar should go towards the purchase.
NSW transfer duty generally applies to commercial and industrial property purchases. Obtain a transaction-specific assessment from your solicitor or conveyancer instead of applying a residential concession or an old online estimate. Ask your accountant to check the tax treatment and any GST implications before you commit. (Revenue NSW: What is transfer duty)
Read beyond the interest rate
Business loans vary in term, pricing, fees and conditions. Request a written proposal that sets out the repayment schedule and what security is required. (business.gov.au: Apply for a business loan) Ask whether the agreement includes a final lump sum, review dates, financial reporting obligations or conditions that must continue to be met. Have your lawyer explain the consequences of a breach and the scope of any personal guarantee before signing.
Prepare for the finance discussion
Bring the proposed contract, property details, a summary of existing borrowing and the financial records requested by the lender. Ask which documents are still outstanding and which conditions must be satisfied before funds can be released. Align those requirements with the contractual settlement timetable through your advisers.
Do not commit on the assumption that approval, a particular valuation or later refinancing is assured. The objective is a purchase the business can support through ordinary trading fluctuations.
This is general information, not personal financial, credit, tax or legal advice. Obtain advice on the proposed transaction and borrowing structure.