A growing demand for certainty, flexibility, and improved cashflow management is driving renewed interest in longer-term commercial property lending solutions
At a time when businesses are navigating financial insecurity, higher operating costs, and ongoing offshore instability, long-term confidence is becoming increasingly important in commercial property lending.
And that appears to be the thinking behind Avanti Finance’s latest product launch, with the specialist lender introducing a new long-term Commercial Property Loan aimed at owner-occupiers and investors seeking greater flexibility around cashflow and growth planning.
According to Ian Boyce (pictured), general manager of property at Avanti Finance, the Commercial Property Loan has been designed to address a gap in the market where longer-term commercial funding options can be relatively limited.
“In the commercial property sector, lending terms typically range between five and 15 years, with relatively limited options available at the longer end of the spectrum,” Boyce says. “We see strong opportunities in the market with businesses and property investors seeking flexible, longer-term funding solutions that align with their cashflow requirements and portfolio growth plans.”
With loan terms of up to 15 years, amortisation periods of up to 25 years, lending of up to $4 million in Auckland and $2 million in other main centres – as well as loan-to-value ratios (LVRs) of up to 70% – Boyce says the product has been developed with a long-term market view rather than as a short-term response to market conditions.
“In today’s environment, where businesses are navigating economic uncertainty and geopolitical volatility, long-term funding is needed to help provide certainty, stability and confidence to plan ahead.
"And the ability to structure repayments over a 25-year amortisation period can significantly reduce repayment pressure by lowering monthly commitments and improving cashflow,” says Boyce. “It helps clients preserve working capital, manage operational costs more effectively and reinvest in their business.”
Positioned as suitable across a range of commercial scenarios, the long-term Commercial Property Loan is aimed at owner-occupiers purchasing premises, investors expanding portfolios, refinancing existing debt, or businesses restructuring existing lending arrangements.
“It’s significant as it allows advisers to support a wider range of commercial property opportunities, particularly in Auckland and across other key regional centres,” Boyce says. “And the higher lending limits provide greater opportunities for advisers working with established businesses and investors who may require larger funding.”
At the same time, the ability to lend up to 70% LVR may help some businesses maintain liquidity at a time when operational costs remain elevated.
“Many businesses continue to face rising operational costs, so higher LVRs help make funding more accessible,” Boyce says. “They can maintain liquidity, manage cashflow more effectively, and continue to invest in their business.”
Since initially rolling the product out to Avanti’s introducer network in February, Boyce says interest has been strong, with a growing pipeline of enquiries and settled transactions already underway.
One recent transaction involved a customer purchasing a commercial property on the outskirts of Auckland, after delays with a traditional bank lender placed the purchase deadline at risk.
“The adviser approached us after their main bank application had been delayed repeatedly,” Boyce says. “After assessing the challenges and the broader opportunity, we were able to offer a 15-year loan with a five-year interest-only period at 70% LVR, helping the customer secure approval in time to proceed with the purchase.”
That example also highlights another area Avanti believes differentiates it from more traditional commercial lenders, with what Boyce describes as a pragmatic, relationship-focused credit approach.
“At Avanti Finance, our credit approach is focused on understanding the full customer story, not simply ticking boxes against a checklist,” he says. “In commercial property lending, we look beyond the numbers to consider the quality and potential of the property, the customer’s overall financial position and the broader business opportunity.”
The recent launch also forms part of Avanti’s broader growth strategy – following its 2025 rebrand – which saw the company intentionally move away from the ‘non-bank lender’ label and reposition itself as a specialist lender.
Boyce says the company’s assets under management have now grown to more than $3.7 billion, up from $2 billion in 2022.
“The new Commercial Property Loan is all part of executing our overall brand strategy,” he says. “As well as complementing our established lending suite, it also gives advisers more tools to diversify revenue and meet more clients’ needs, and creates new partnership opportunities within the commercial broker sector.”
As advisers continue to look for lending solutions that can support clients through a more uncertain economic environment, along with flexibility, speed, and practical support when navigating more complex commercial deals, Boyce is confident that products like Avanti’s Commercial Property Loan will become an increasingly important part of the commercial lending conversation.
“While our Business Development Managers and Lending Specialists work closely with advisers to workshop deals, navigate complexities and find practical solutions that align with both the client’s needs and our credit appetite – the market needs to provide the right products to offer the means to do so. And I certainly feel we’ve achieved that here.”
