Commercial Property Finance & Loan Against Property.
An owned commercial property — leased or vacant, developer-held or business-occupied — carries real, financeable value even without a rental income stream to underwrite against. Commercial property finance unlocks that value directly, on terms that reflect the property itself rather than its occupancy.
Loan Against Property · Vacant & Occupied Assets · Business & Growth Capital
Where This Becomes Relevant
- A business or developer holds unencumbered commercial property and wants to unlock its value without selling.
- The property is vacant or owner-occupied, so it doesn't generate the rental cash flows LRD is specifically sized against.
- Capital is needed for a purpose outside the property itself — business expansion, working capital, or another project entirely.
What Lenders Evaluate
- Property Valuation — an independent, conservative assessment of current market value.
- Title & Encumbrance Status — clean, mortgageable title free of existing charges.
- Borrower Repayment Capacity — since LAP is not self-liquidating from the property's own cash flows, overall business or personal repayment capacity matters more than in LRD.
- End Use — what the capital is actually being deployed for, which shapes structure and monitoring.
How the Financing Is Approached
Loan against property is structured around a conservative loan-to-value on the property's independently assessed market value, with repayment capacity assessed from the borrower's overall financial position rather than the property's own cash flows — the key distinction from LRD, which is priced against contracted rent. Where the same asset later becomes leased and income-producing, refinancing into an LRD structure is often a natural next step once that rental stream exists.
What EquiFin Does
Valuation & Title Review — confirming the property's value and clean, mortgageable status.
Repayment Capacity Assessment — evaluating the borrower's broader ability to service the facility.
Lender Fit — matching the requirement to lenders with the right LTV and pricing appetite.
Future LRD Transition Planning — where relevant, planning the path to LRD once the asset becomes income-producing.
Why EquiFin
- We size the facility against a conservative, independently assessed property value.
- We evaluate real repayment capacity, not just collateral value.
- We plan the path to LRD when an asset's occupancy status is likely to change.
- One point of contact from structuring through to disbursement.
Frequently Asked Questions
What is commercial property finance?
Commercial property finance is debt secured against an owned commercial property's value, used to fund business growth, working capital or other requirements. It's distinct from Lease Rental Discounting, which is specifically sized against contracted rental income rather than the property's standalone value.
How is loan against property different from LRD?
Loan against property (LAP) is sized primarily against the property's market value and the borrower's overall repayment capacity. LRD is sized specifically against the rental cash flows a leased property generates, using lease tenor, tenant quality and DSCR as the core underwriting inputs. A vacant or owner-occupied property is a LAP candidate; a leased, income-producing property is better suited to LRD.
Can developers use loan against property?
Yes — developers holding unencumbered commercial property, whether completed inventory, an office asset, or another owned commercial building, can use it as collateral for a loan against property facility, typically for purposes outside the specific project the property relates to.
See what documents lenders typically ask for — Documents Required for a Corporate Loan →
An Owned Property Doesn't Need a Tenant to Unlock Its Value.
Loan against property works whether the asset is vacant, owner-occupied or leased.
Discuss a Commercial Property Finance Requirement