Finance question
Can I get a business loan against retail premises?
Often yes. Retail premises you own, a shop, a strata unit in a centre, or a mixed-use shopfront, are commercial security, so the equity can back a business facility up to the $5 to 6 million range at single-digit rates. ATO debt is often workable on these deals.
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The short answer
Your shopfront can fund your business
Retail premises you own sit as commercial security a lender can work with, whether that is a high-street shop, a strata unit inside a shopping centre, or a shopfront with a flat above it. If you own it, or hold real equity, that equity can be released to fund the retail business rather than left tied up in the property.
Retailers feel seasonality and tight margins more than most, so the funds often go into stock ahead of a peak, a refit to lift foot traffic, or smoothing cashflow between quiet and busy months. Because the premises secure the facility, the rate lands in single digits, which keeps the repayment realistic against retail margins.
Even a tax debt does not automatically stop these deals. Property-backed lending can work around ATO arrears when there is enough equity in the premises, so a BAS or income-tax balance that has crept up can be dealt with rather than blocking the funding you need to keep trading.
Do you qualify?
What makes a retail deal fundable.
You own the premises
A shop, strata unit or mixed-use shopfront you hold.
Usable equity
Value minus what you owe is what sizes the facility.
A trading purpose
Stock, a refit, or smoothing seasonal cashflow.
ATO debt is workable
Arrears can often be handled where equity covers them.
Why owned retail premises fund well
Commercial security
A shopfront is real estate lenders extend sizable limits against.
Single-digit rates
Property security keeps pricing in single digits, kinder on retail margins.
Arrears workable
ATO debt can be worked around when the equity supports it.
A real example
A homewares retailer owns a strata shop valued at $900k with $250k owing, leaving about $650k in equity. That equity supports a facility at a single-digit rate, drawn to clear a lingering BAS balance and buy stock before the Christmas run. Illustrative only, subject to valuation.
Common questions
Frequently asked questions
Does a strata retail unit count as security?
Yes. A strata shop or a unit inside a centre works as commercial security, subject to valuation and lender assessment.
Can I borrow against a mixed-use shopfront?
Often yes. A shop with residential above it can still be used, and the mix is assessed by the lender.
I have an ATO balance, does that stop me?
Not automatically. Property-backed lending can work around ATO debt when there is enough equity in the premises.
Can I still trade from the shop while it secures the loan?
Yes. Using it as security does not affect your day-to-day trading.