Quick answer
A short-term loan against commercial property is a business loan secured by a shop, office, warehouse, factory or similar building you or your company own. Loans run from $20k to $5m as a first mortgage, a second mortgage behind an existing commercial loan, or a caveat loan for Victorian property. Lenders weigh zoning, leases, vacancy and how readily the property would sell, and repayment is measured in months, not decades.
Key points
- Shops, offices, warehouses, factories, industrial units and mixed-use buildings can all secure a short-term business loan.
- The structure depends on the title: first mortgage if clear, second mortgage behind an existing loan, caveat loan for Victorian property.
- Commercial valuations look harder at leases, tenants, zoning, condition and how specialised the building is.
- Same-day funding is possible for $20k to $250k; up to $5m is possible within 24–48 hours on straightforward files.
- Loan size
- $20k–$5m
- Accepted
- Retail, office, industrial, mixed-use
- Owner
- You, your company or trust
If your business owns its premises — or you own a shop, office or warehouse that’s leased out — you may be sitting on one of the most useful sources of short-term money there is. Commercial buildings often carry substantial equity, and a short-term loan lets you use it without selling, without disturbing tenants, and without waiting months for a bank to reassess the whole business.
Which commercial properties can secure a short-term loan?
Most mainstream commercial property works well. Typical examples:
- Retail: strip shops, shopfronts with residences above, small neighbourhood centres.
- Office: standalone offices, office suites, professional and medical rooms.
- Industrial: warehouses, factories, workshops, industrial units in business parks.
- Mixed-use: buildings combining commercial and residential space.
Property owned by you personally, by your company or by your trust can all be used. Highly specialised buildings — a purpose-built facility with only a handful of likely buyers — and properties in very small markets can still work, but generally support less borrowing because they’re harder to sell quickly. Our property guide to commercial and industrial property covers the security side in more detail.
Which short-term structure fits a commercial property?
Exactly the same logic as a house: what’s already on the title, which state it’s in, and how long you need the money.
| Title position | Victoria | Every other state and territory |
|---|---|---|
| No loan on the property | Short-term first mortgage | Short-term first mortgage |
| Existing commercial loan you want to keep | Short-term caveat loan | Short-term registered second mortgage |
| Existing loan you’re ready to pay out | One first mortgage repays the old lender, extra funds go to the business | Same approach — a single first mortgage over the building |
Caveats are a Victorian tool. For a building in New South Wales, Queensland or anywhere else, we register a second mortgage instead, and that is usually just as quick to put in place. Either way, the amount can be anywhere from $20k up to $5m, and the money must go to a business purpose.
Got a building in mind and a number? Send us the property details and we’ll tell you which structure fits it.
What do lenders weigh differently on commercial property?
A house is valued mostly on comparable sales. A commercial building has more moving parts, and each one affects how much it can support and how quickly the loan can settle.
| What’s assessed | Why it matters |
|---|---|
| Zoning and permitted use | Decides who could buy the property and what they could do with it |
| Lease and tenant | A strong tenant on a solid lease supports value; a vacancy or short lease reduces it |
| Rental income | Helps the valuer, and can support the exit |
| Condition and compliance | Major defects or unapproved works can cut value or slow the valuation |
| How specialised it is | The fewer the likely buyers, the more conservative the lender |
| Strata or stand-alone | Strata rules and levies are reviewed on units in a complex |
Business Victoria’s guide to buying business premises points owners to property certificates that show ownership, dimensions, zoning, heritage listings and council permits — the same kind of information a lender and valuer will look at. For a closer look at the inspection itself, see what the valuer checks on commercial property and valuations for short-term loans.
Illustrative example: equity in the warehouse
An illustration only — round numbers, no real client, no rates.
A Dandenong engineering company owns its warehouse through a company. The building is worth about $1.6m with roughly $600k owing to a bank the directors are happy with. The company needs $400k to clear an ATO debt and buy a CNC machine for a new contract.
- Structure: Victorian property with a bank loan they want to keep, so a short-term caveat loan.
- Equity: $400k on top of $600k puts combined borrowing at about $1m, around 63% of value.
- Timing: above $250k, so planning for the 24–48 hour window — and a commercial valuation, which can take longer than a residential one.
- Exit: a refinance to the bank once the ATO debt is cleared and the new contract’s income shows in the accounts.
Had the same warehouse been in Brisbane, a short-term registered second mortgage would have done the same job on similar timing.
Owner-occupied or leased out — does it change the loan?
It changes what the lender looks at, not whether the loan works. When your own business occupies the building, the valuer considers what it would be worth with a typical tenant or with vacant possession, and we pay close attention to how the business is trading, since it’s both borrower and occupant. When the building is leased to someone else, the lease itself does much of the talking: who the tenant is, how long is left to run, and whether the rent is in line with the market. Either way, a clear title and a dated exit keep things moving.
What exits work with commercial property?
The exit is as important as the equity. Common ones:
- Refinance to a longer-term commercial loan once the pressure has passed.
- Business income from a contract, a busy season or a sale of stock.
- Sale of the property, or another property. If selling commercial premises is the plan, factor in tax: the ATO explains that you’re generally liable for GST on the sale price unless the sale qualifies as a going concern, and capital gains tax may apply. Your accountant can tell you what lands in your account after settlement.
Property is also what unlocks bigger amounts generally. In an October 2025 RBA Bulletin, around half of small-sized loans to small and medium businesses were secured with assets other than residential property — a reminder that the family home isn’t the only security that works.
Your building could be the answer — let’s check
If you own commercial property and need funds in the next few days or weeks, a short enquiry is the quickest way to know where you stand. It takes about 60 seconds, there’s no credit check when you first enquire, and your details come to us alone — not out to a crowd of lenders who’ll all ring at once. A real person from our credit team who knows commercial security reviews your situation and calls you.
Please be accurate about the building’s address, the state it’s in, what type of property it is, what’s owing and when you need the money. That lets us settle on the right structure on the first call.
Frequently asked questions
What kinds of commercial property can secure a short-term loan?
Common examples include shops, offices, warehouses, factories, industrial units, medical and professional suites, and mixed-use buildings with a shop below and a residence above. Highly specialised buildings and remote properties can still work, but they usually support a smaller loan because they're harder to sell.
Can I borrow against commercial property that already has a bank loan?
Yes. A short-term second mortgage sits behind the existing commercial loan and leaves it in place. For Victorian property, a caveat loan can do the same job; everywhere else a registered second mortgage is used and is usually arranged just as quickly.
Does a tenant in the property help or hurt?
A good tenant on a solid lease generally helps, because it supports the value and makes the property easier to sell. A vacant building or a lease close to expiry is usually valued more cautiously.
Can the loan be used for my business if the property is owned by a company or trust?
Yes, provided the loan is for a business purpose. The company or trust documents become part of the file, and directors or trustees sign the loan and security.
How is commercial property valued for a short-term loan?
Usually by a valuer who looks at location, zoning, condition, lease terms, rental income, comparable sales and how long a sale would realistically take. Commercial valuations often take longer than residential ones, so allow for that in your timing.
Can I use the loan to buy more commercial property?
Often, yes — for example, a deposit on new premises secured against the building you already own, repaid when the purchase is refinanced or another property sells.