Australians love their ‘stuff’ and whether we are downsizing our living arrangements, simplifying our surroundings or temporarily moving across borders for any number of reasons, the demand for personal and business storage solutions in Australia just keeps on growing.
With few substitutes for the services that self-storage facilities offer, self-storage sheds can pose an attractive investment or business opportunity but like any business, it pays to ensure your foundations are solid and that means getting the right finance in place.
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Generally, banks and lenders view self-storage facilities as specialised commercial property due to their limited usage outside of self storage services.
While a general purpose warehouse could be used by any number of different businesses, a storage facility can really only ever be used by a self-storage business, without major redevelopment, which ultimately impacts the amount of money a bank or private lender will allow you to borrow against the value of the property.
Green Finance Group has helped many self-storage businesses nationwide to get a better finance deal, so whether you are looking to invest in an existing self-storage facility or develop your own, we’ve got the experience, industry connections and negotiating know-how to help.
Not all banks will lend for this type of business while some will lend only for freehold arrangements.
The amount you can borrow, your interest rate discount and the quality of your loan terms and conditions will primarily be impacted by your business plan, the
quality and detail of your loan submission and your finance broker’s ability to negotiate on your behalf.
Loan to Value Ratio (LVR): Funding is generally available up to 60% of the market value for most applications, however we have been successful in negotiating terms of up to 70% on a case by case basis.
Repayment Terms: Up to 25 years are available however, similar to rates and fees, the maximum term and repayments will vary depending on the financier. Interest Only (IO) options currently up to 5 years.
Valuations: The market value of the property will be established by a formal valuation conducted by a commercial property valuer. A valuation will usually be required even where you are purchasing the property in the open market through a valid contract of sale.
At Green Finance Group we have self-storage finance specialists who assist business owners and investors to secure competitive finance solutions for facilities of all sizes, both franchise and independent, and we can help find you a better finance deal too.
Director
Australia's leading hospitality, accommodation and childcare finance specialist and winner of Australian Broker of the Year 2022.
James was prompt, professional and effective. I have not used brokers typically but was pleasantly surprised and have now referred others to James based on the quality of his work.
Thank you Green Finance . This is the second time Daniel Green and his experienced finance team have successfully helped me out with my business finance . They are very professional promt and kept me up to date every step of the way. I would strongly recommend Green Finance Group to anyone in need of any financial services.
This was the first time we have used a broker and Daniel Green made the entire process easy and stressless. They do all the ground work with the bank and are extremely efficient with helping you obtain all the necessary information and documents required by the bank. I would highly recommend Green Finance and wouldn't hesitate to use them again
