Commercial loans: what you need to know

A business owner looking at her finances

 Estimated read time: 4 Minutes

To stay competitive and grow your business, you may need to invest in equipment, vehicles or even property. If you don’t have the cash to hand, a commercial loan could be an option. 

You have to spend money to make money – or so the saying goes. If your business is growing, or something unexpected happens, you may need to add more vehicles, upgrade your technology or equipment, or expand into new premises. Commercial loans are there to help you make the most of opportunities if, like many real-life businesses, you don’t have the funds on hand to buy those big-ticket items outright.

Our guide to commercial loans will take you through the general ins and outs of commercial loans, how they work and how to get started. 

What is a commercial loan?

commercial loans

A commercial loan is a type of loan that’s just for businesses.

Unlike a mortgage, which is secured against your home, a commercial loan is secured against your business assets and can only be used for very specific business-related purchases. 


Is a business loan the same as a commercial loan?

Business loans and commercial loans are very similar, with one important difference. You might take out a business loan to pay off debts or smooth out your cash flow, but a commercial loan is used for a specific asset purchase related to your business. That asset is the security for the loan. It could be a commercial property – a warehouse, retail store or office space. Or a vehicle you use for the business – like a ute or van. It can also be specialist equipment like a 3D printer or a forklift.

How do commercial loans work?

There are two types of commercial loans – asset and equipment loans, and commercial property loans:

business vehicle

Commercial asset or equipment loan

For an equipment or asset commercial loan, the asset or piece of equipment you’re looking to buy usually acts as security against the loan. This means if you default on your loan repayments, your lender will take back the asset. Asset and equipment loans tend to be shorter than property loans – typically five to seven years. 
business vehicle

Commercial property loan

A commercial property loan is like a mortgage for your business premises. Just like a mortgage, they can be for a long period of time – usually up to 30 years – and secured against that property as well as other business assets if needed. For a commercial property loan, you usually need a deposit – typically a percentage of the value of the property you want to buy. 

Commercial loans can affect you at tax time – in some cases you may be able to claim the interest as an expense. It’s always a good idea to speak to a tax professional before you apply for a commercial loan. 


What can commercial loans be used for?

From buying your business premises to upgrading your equipment or getting a new car, commercial loans are flexible and can be used for a number of different things, including: 

business vehicle


Including cars, utes, delivery trucks and even buses used for your business. 
business vehicle

Commercial business equipment

Including heavy machinery like forklifts and excavators, technology like computers and audio-visual equipment, and other business-specific equipment like tools or safety gear. 
business vehicle

Commercial property

Including industrial units and warehouses, retail premises, mixed use properties, medical suites and more. 

How do I get a commercial property loan?

Through a lender accredited to offer commercial loans. At Pepper Money we have a range of real-life options to suit different business needs. Our commercial property loans are tailored to your business with flexible terms, cash-out options and multiple ways to prove your income. Here’s how to get started: 

Call us on 137 377 and choose option 2 to find out if you’re eligible.
Book an appointment with one of our lending specialists to discuss your application.
Get your supporting documents ready – your friendly lending specialist will tell you what we need. 
Complete your application with our help.
Submit your application. We’ll review everything and run a quick credit check.
We’ll let you know our decision in 24-48 hours. 

How do I get a commercial equipment loan?

Before you apply for a commercial asset or equipment loan, get your documents together, including:

  • Details of your current and any previous ABNs
  • Valid driver licence or passport
  • Details of your financial position, including any assets and liabilities like mortgages, property values, savings, superannuation, personal loans, and other asset finances
  • Three years of residential and commercial history

Being prepared upfront can save you time and means you’ll get an answer faster. Once you have your documentation ready you can apply for a commercial vehicle loan online, or equipment finance.

business vehicle

To apply for commercial vehicle finance:

business vehicle

To apply for equipment finance:

Visit our car loans application page.
Select ‘business.’
Answer three eligibility questions.
Complete the online form, tick our privacy consent box and submit your application.
A lending specialist will review your application and supporting documents. We’ll be in touch if we need any more information.
We’ll send your application to our credit team for assessment and let you know our decision.
Once your application has been approved, we’ll email you the details. 
Complete the online form at the bottom of the page.
One of our lending specialists will reach out to discuss your finance request, and help you submit an application and supporting documents. If we need any more information, we’ll let you know.
Our credit team will assess your application and let you know the outcome.
Once your application has been approved, we’ll email you the details. 

Are you looking for a little real-life help to make your next business purchase? Learn more about our commercial loan options or start your commercial vehicle loan application.


Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.

All applications are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply. 

The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see 'about this calculator') and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated borrowing power is based on the assumption that interest rates remain constant for the chosen loan term. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widgetworks.

Pepper Money Personal Loans is a brand of Pepper Money Limited. Credit is provided by Now Finance Group Pty Ltd, Australian Credit Licence Number 425142 as agent for NF Finco 2 Pty Limited ACN 164 213 030. Personal information for Pepper Money Personal Loans is collected, used and disclosed in accordance with Pepper’s Privacy Policy & the credit provider’s Privacy Policy.

Pepper Money Limited ABN 55 094 317 665; AFSL 286655; Australian Credit Licence 286655 (“Pepper”). All rights reserved. Pepper is the servicer of home loans provided by Pepper Finance Corporation Limited ABN 51 094 317 647. Pepper Asset Finance Pty Limited ACN 165 183 317 Australian Credit Licence 458899 is the credit provider for asset finance loans.

Pepper and the Pepper Money logo are registered trademarks of Pepper Group Assets (Australia) Pty Limited and are used under licence.

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