Private loans for non-residential investment property

Last updated 6 November 2026 · Reviewed by 360 MMS Compliance

What is a private loan for non-residential investment property?

It's finance from outside the mainstream lending market to buy or hold property that earns income and isn't residential, such as an office, a shop, a warehouse, a factory or an industrial unit. It's short term, and designed to cover a period such as the time it takes to lease, improve or sell the property, or to put longer-term finance in place.

The lender looks at the whole deal: the property, the tenants and leases, the borrowers, your plan and how the loan will be repaid. A valuation is part of the process.

When might an investor use private finance instead of a standard loan?

Private finance is usually considered when the deal or the timing doesn't fit a standard commercial loan, for example:

• Timing: a settlement date that comes before longer-term finance can be arranged.
• Leasing: a property that's partly vacant, between tenants or has a lease ending, where the plan is to re-lease and then refinance.
• Improvements: a plan to upgrade or reposition the property before moving to a longer-term loan.
• Property type: a property that falls outside a standard loan's property or location rules.

Whether private finance is available depends on the deal. The lender will assess your application against its criteria.

How does it compare with a standard commercial property loan?

Why does the exit strategy matter?

Because the loan is repaid at the end rather than over a long term, the lender wants to see a realistic exit before making an offer. Typical exits are:

• refinancing to a standard commercial property loan once the property is leased, improved or the borrower's records are ready;
• selling the property.

Plan for delays. If leasing or a sale takes longer than expected, or a refinance isn't available as planned, more interest builds up and more debt may be left at the end. If your timeline changes, talk to your broker early.

What does it cost?

Private finance generally costs more than a standard commercial property loan. Ask about interest (capitalised interest is added to the loan, so you pay interest on interest), establishment, valuation and legal fees, exit costs, and any costs if the loan isn't repaid when planned. Each loan is quoted individually, and fees and charges apply.

Tax matters too. Buying, holding and selling commercial property can involve GST, stamp duty and capital gains tax, depending on your situation. Talk to your accountant before you commit.

What are the pros and cons of a private non-residential investment loan?

Possible advantages

• It can fit deals or timing that a standard commercial loan doesn't.
• Interest-only or capitalised interest can ease cash flow while the property is leased or improved.

Possible disadvantages

• It generally costs more than a standard commercial loan.
• With capitalised interest, the balance grows over the life of the loan.
• It relies on the exit: if a refinance or sale doesn't happen as planned, costs rise.
• These loans aren't regulated by the National Credit Code, so its consumer protections don't apply in the same way.

How do I apply for a private investment loan, step by step?

1. Talk to your broker or our team. Share the property, the income it earns or will earn, and your plan.
2. Share the details. Lease details, property information and your exit plan.
3. Get a quote. The structure is talked through and the loan is quoted individually, with no rate sheet.
4. The assessment. The lender assesses the property, the tenants and leases, the borrowers and the exit against its criteria, and a valuation is part of the process. Every borrower signs a business purpose declaration.
5. The offer. If the loan is approved, you receive a loan offer and documents. Get independent legal and financial advice before you sign.
6. Settlement and exit. The loan settles, and it's repaid by a refinance or a sale.

How can 360 Private help?

For a non-residential investment property, the team can:

• talk through the property, the income and your plan before you apply;
• explain what the lender will need, such as lease details, property information and your exit plan;
• quote the loan individually, then work through application, valuation and approval, subject to the lender's assessment;
• work with your broker, or with you directly;
• compare it with a standard commercial property loan, including full doc, alt doc and lease doc options.

FAQs

Sources and further reading:ASIC: National Credit Code · ATO: GST and commercial property · business.gov.au: Apply for a business loan

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. 360 Private loans are for business purposes only, aren't regulated by the National Credit Code, and are subject to lending criteria; fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193.