April 30, 2026 Retail & Consumer Services

A Commercial Mortgage Guide for Florist Owners

Buying the shop your florist business trades from is a defining move from tenant to owner. At Ardent Capital Group we speak with florist operators about this kind of commercial property purchase, so this guide walks through how a lender values the premises, the deposit to plan for, and the ways these buys are commonly financed.

Ardent Capital Group is a specialist in commercial mortgages for florist operators across Australia. Our team helps owners move from tenant to owner and gives clear lending advice on structure and strategy.

We can help you access finance from $100K to $10M and beyond.
We have facilitated over $500M in loans across more than a decade.
We service Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
We arrange finance across major banks and non-bank lenders.

A florist purchase sits within our retail lending work. A florist property loan is assessed as standard commercial security rather than a specialised trading asset, which is the bucket that tends to gear the highest.

What ownership gives a florist operator

Floristry is location and cold-chain sensitive. Your walk-in trade is tied to a specific strip, centre or village, often near hospitals, churches, funeral homes and wedding hubs. Fit-outs are capital heavy, from cool rooms and display fridges to three-phase power, ventilation, benches, sinks and green-waste management. Ownership lets you install and upgrade once, then benefit from the asset value and the control.

Repayments build equity in a property that can hold value through seasonal peaks and life-event demand, including Valentine's Day, Mother's Day, weddings and funerals. You remove the risk of a landlord blocking condenser mounts on the roof or limiting the electrical capacity your refrigeration needs.

Key drivers for florists:

Control the fit-out: cool rooms, condensers, drainage, three-phase power and ventilation installed to your spec without landlord hurdles.
Lock in the address: keep established foot traffic and repeat corporate accounts tied to the same shopfront.
Stabilise occupancy cost: shift from rent rises to a loan with clearer visibility, building an owned asset over time.
Improve logistics: secure a loading area, parking for delivery vans and early-morning access for market runs.
Strengthen brand value: signage rights and presentation that you maintain without lease restrictions.

Buying does not suit every stage. A short remaining lease with a known relocation, a plan to follow a key hospital or retail centre to a new suburb, or capital that would earn more in marketing, staff or product can all point the other way. The decision sits with you, and we are glad to help you weigh it.

How a florist purchase is funded

Deposit and LVR. A florist shop is standard commercial security, so for owner-occupiers it commonly gears to around 80 per cent, putting the deposit near 20 to 25 per cent. The major banks assess owner-occupier commercial purchases case by case rather than to a published ratio, which is exactly where a broker earns their place. In some cases the full purchase price can be funded where residential or other property you already own is added as security.

Loan term and structure. Non-bank lenders publish terms of 25 to 30 years, while the banks' commercial products typically run 10 to 15. You can choose principal and interest for steady debt reduction, or interest only for a period where cash flow is tight around fit-out or stock cycles.

Security and serviceability. The property is the primary security. Lenders assess your business financials, bank statements and serviceability, factoring in the seasonality around Valentine's Day, Mother's Day and Christmas.

Owner-occupier treatment. Lenders generally favour owner-occupiers. A florist trading from the premises with clear profitability and stable turnover often sees sharper pricing and more flexible structures than a pure investment purchase.

Common holding structures

Many florist operators hold the freehold in a separate entity, often a company or trust, and lease it to the trading business at a commercial rent. A lender then reads that inter-entity rent as a documented serviceability line, and the arrangement keeps the trading risk and the property asset apart. Ardent arranges the lending around whichever entity holds the freehold, while the trust deed and rent agreement remain matters for your solicitor and accountant to finalise.

SMSF, briefly. Commercial premises usually qualify as business real property, so a self-managed super fund can hold the building through a limited recourse borrowing arrangement and lease it back to the florist business at market rent. Lenders apply lower LVRs here, and the setup and ongoing rules are tighter around contributions and liquidity. Ardent arranges the loan against that structure, while the fund's accountant and SMSF specialist confirm the tax, contribution and ownership detail before the purchase proceeds.

What a lender looks at

Business financials and conduct: two to three years of financials, BAS and bank statements, noting add-backs and any ATO arrangements.
Serviceability: cash flow after rent or proposed repayments, recognising seasonal spikes and early-morning market purchases.
Property and valuation: retail frontage, parking, strata condition, power capacity, ventilation, refrigeration plant placement and compliance with noise and condenser exhaust rules.
Deposit and equity position: cash, retained profits, or equity in residential or other commercial property you may put toward the deposit.
Lease and occupancy: owner-occupier plans, or lease quality if part is sublet, including term, options and market rent.

A specialist broker who understands florist operations can present a stronger, more accurate picture of serviceability and property risk to credit teams.

An illustrative scenario

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run.

Situation: a suburban florist with a 120 sqm strata shop near a hospital, long-standing walk-in trade, peak-season spikes and a back-of-house cool room. Purchase price around $950,000, with a fit-out refresh estimated near $120,000.
Funding weighed: using cash reserves of about $220,000 against drawing on equity in the owner's home for part of the deposit, keeping more cash free for seasonal stock and delivery van upgrades.
Structures considered: holding in a family trust with a corporate trustee and leasing back at a market rent near $72,000 a year plus outgoings, or an SMSF for a long-term hold with a lower LVR and tighter cash settings.
How we would approach it: map the owner-occupier LVR range near 75 to 80 per cent, weigh an interest-only period of 12 to 24 months to complete the refrigeration and signage works, then a move to principal and interest. The figures above are illustrative, not confirmed outcomes.

Ways we can fund a florist business

Asset finance: fund display fridges, cool rooms, condensers, benches, POS and chilled delivery vans; a facility such as florist equipment finance keeps that spend off the property loan.
Fit-out and refurbishment finance: install three-phase power, drainage, ventilation, counters and signage without draining working cash.
Working capital loans: smooth stock purchases ahead of Valentine's Day and Mother's Day and carry corporate event receivables, with working capital for a florist tuned to the trading cycle.
Business overdraft: cover short cycles between Sydney, Melbourne or Brisbane flower market buys and customer collections.
Refinancing and debt consolidation: reset pricing, tidy multiple facilities and release capacity for a fit-out refresh.
Construction and renovation: expand a back-of-house chiller, add a prep area or convert a small warehouse with a retail front.
Business or premises acquisition finance: buy the freehold you currently rent, add a second shop, or buy out a partner.

These facilities can work together. Owning the premises can free equity for plant and equipment, and a refinance can consolidate short-term debt into a clearer structure.

How Ardent helps florist buyers

ACG focuses on commercial mortgages for florist operators. We arrange and structure finance around how you intend to hold and occupy the property, then align repayments with your trading profile.

We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas. Ardent Capital Group is a specialist in commercial mortgages and our team can help you today. We have helped facilitate over $500M in funding over a decade for more than 1,000 borrowers. Talk to us about an approach aimed at strong long-term outcomes, without pressure.

Questions worth asking

How much deposit do I need to buy my florist premises? Most florist owner-occupiers plan for a deposit near 20 to 25 per cent, since a florist shop commonly gears to around 80 per cent LVR as standard commercial security. The major banks assess these purchases case by case.

Will a lender count my seasonal peaks when assessing serviceability? Yes. Lenders look at full-year cash flow and seasonality around Valentine's Day, Mother's Day and Christmas, using financials and bank statements to test both average and low months.

Can I buy through an SMSF and lease back to my florist business? Often, where the property qualifies as business real property and the lease is at market rent, noting lower LVRs and stricter rules on liquidity and contributions. Your accountant confirms the detail.

Do valuations consider my cool room and built-in refrigeration? Fixed cool rooms and services tied to the building may form part of the property value, while movable display fridges are usually treated as plant and equipment outside the property valuation.

Is a strata retail shop acceptable security for a florist mortgage? Commonly yes, with lenders assessing location, foot traffic, strata health, services capacity and compliance for condensers and ventilation.

Can I use equity in my home to help with the deposit and keep cash for stock? Yes. Many owners use the equity in residential property to reduce the cash outlay, then preserve liquidity for peak-season inventory and deliveries.

Written by

Nick Chong

Managing Director, M.AppFin, Dip. Mortgage Mgmt

Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.