Why banks avoid industrial property refinancing
Industrial properties are complex. A factory has specialised equipment, environmental risks, and a tenant profile that traditional banks don't understand. Even well-maintained industrial properties get declined for refinancing because the bank's valuation model doesn't account for industrial-specific factors. Lenders also fear tenant lockout or equipment obsolescence. This leaves owners trapped in expensive mortgages with no way to refinance despite rising property values.
How specialist lenders assess industrial property value
Private lenders focus on the underlying real estate value, current tenancy, and exit strategy rather than generic bank rules.
- Land and building value — They separate the real estate value from equipment and business operations, assessing property worth independently.
- Tenant strength and lease terms — They evaluate tenant creditworthiness and lease length (24+ months of income is typically low risk).
- Exit strategy — They understand that industrial property can be sold, re-tenanted, or repurposed — flexibility matters.
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Check Your OptionsWhat a typical industrial refinance looks like
Illustrative example — not a real caseA manufacturing facility valued at $2.5M had a warehouse tenant on a 5-year lease paying $120K annually. The owner had a bank mortgage at 7.2% with 8 years remaining. When interest rates rose, the owner approached three banks for refinancing. All declined, citing 'industrial property risk' despite the property being fully leased to a stable tenant. A private lender assessed the property value ($2.5M), the lease income ($120K/year = solid), and the tenant's 5-year commitment. They approved a refinance of $1.8M (72% LVR) at 5.8% for 10 years. The owner's monthly repayment fell from $27K to $21K, freeing $6K monthly for expansion or reserves.
What lenders want to see
- Current independent property valuation (less than 12 months old).
- Copy of the lease(s) including terms, rent amount, and tenant contact for verification.
- Tenant financial statements or bank details to confirm creditworthiness.
- Details of any maintenance or capital expenditure needs identified in recent inspections.
When this might not work
Industrial refinancing may not work if: (1) the property is vacant or has short-term leases only, (2) environmental issues are identified, (3) the building requires significant structural repairs, or (4) the property is in a declining industrial area.
- Fast assessment based on business revenue, not credit score
- Flexible terms tailored to your cash flow pattern
- Access to capital even with ATO debt or prior defaults
- Decision within 24–48 hours for most applications
The exact lender and terms depend on your specific deal. Describe your situation and our AI will match you with the most suitable lenders.
How to get started — step by step
- Step 1: Describe your situation. Tell us about your business, what you need the funds for, and any credit or ATO challenges you're facing.
- Step 2: Get matched with lenders. Our AI analyses your details and matches you with specialist lenders most likely to say yes.
- Step 3: Review and move forward. Compare options, ask questions, and choose the lender that fits your situation best.