Business loans from $2 million to $5 million

Loans in the $2 million to $5 million range are where business funding meets commercial property. Owners borrowing this much are usually buying a building, a business, or a large piece of the future: a fleet, a production line or a contract that will define the next five years. Occasionally they’re solving a problem, such as a large ATO debt or a settlement that’s about to fall over.

These loans are always property-backed, often across more than one title. And while big numbers usually mean long timelines, up to $5m is possible within 24–48 hours when the file is complete and the securities are straightforward.

What large business loans are used for

Purpose	Typical structure	What speeds it up
Buying commercial premises	First mortgage over the purchase plus other property	Contract, deposit paid, valuation booked early
Buying a business	Property-backed loan alongside vendor terms	Sale agreement and due diligence complete
Clearing a large ATO debt	Short-term loan with refinance exit	ATO statement and clear exit plan
Funding a large contract	Property-backed facility	Signed contract and payment schedule
Settlement shortfall	Short-term bridging or caveat loan	Settlement date and figures confirmed

How lenders assess $2m to $5m

Equity across the securities. Lenders add up the value of each property, subtract what’s owing and lend within a safe margin. Specialised or rural properties usually count for less.

The ownership structure. Properties in trusts, self-managed structures or companies need extra documents and signatures. Self-managed super fund property generally can’t be used for this kind of lending.

The purpose and exit. At this size, a lender wants to see exactly where the money goes and how it comes back. For short-term loans, the exit is usually a refinance or a sale, with a date attached.

The people. Directors and guarantors are identified and checked. Past credit issues are considered case by case.

Why bigger isn’t always slower

Much of the time on a large loan is spent on tasks that can run at the same time: valuations on several properties, title searches, payout figures from existing lenders and document preparation. When those start on day one, a $3 million loan can move at a similar pace to a $500,000 one. When they start one after another, it can take weeks.

An illustrative example

A Melbourne food manufacturer has the chance to buy the factory it leases plus the vacant lot next door, for a combined price that needs about $3.5 million of funding after the deposit. The directors’ homes and the company’s existing warehouse together hold enough equity. Three valuations are ordered the morning the enquiry comes in, and payout figures for the warehouse loan are requested at the same time. With everything running in parallel, the loan is approved and documents signed within two days, and settlement happens on the date in the contract.

Costs that matter on large loans

• Valuations on every property, with higher fees for commercial or specialised assets.
• Legal fees for each security and for the lender’s solicitor.
• Establishment and line fees, which on a large loan are significant in dollars.
• Discharge and early repayment costs when you refinance or sell.

Always compare the total dollar cost over the period you’ll actually hold the loan.

Structuring a large loan in stages

Not every dollar of a large loan has to arrive on the same day. A business buying premises might need the deposit urgently but the balance only at settlement weeks later. A contractor might need funds for equipment now and for wages as the job ramps up. Splitting a large facility into stages, or pairing a quick short-term loan with a slower longer-term one, can reduce cost and pressure. It also gives you room to bring in a longer-term lender once the urgent part is handled. Tell us the timeline of when each part of the money is needed, not just the total, and we can map a structure to it.

Use your advisers early

Brief your accountant and solicitor on day one. On large loans, their availability to review documents and supply letters often sets the pace more than the lender’s.

Talk to us about a large loan

Tell us the amount, the purpose, the deadline and which properties are available. Enquiring involves no credit check, and your details aren’t distributed around a panel of lenders. A real person with experience in larger deals calls you, explains what’s realistic and gets valuations and searches moving.

Please complete the form accurately, especially property values, existing loans and ownership structures, so we can tell you straight away whether your timeline works. Start your enquiry.