May 27, 2026 Automotive & Transport

Understanding Commercial Mortgages for a Spray Painting Workshop

Buying the workshop your spray painting business already runs from is a defining step for any operator. At Ardent Capital Group we speak with owners about this kind of commercial property purchase, so this guide sets out how a lender reads a spray painting premises, what shapes the deposit and how the finance is commonly arranged.

Ardent Capital Group is a specialist in commercial mortgages for spray painter operators across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy.

Access finance from $100,000 to $10,000,000+, including bank and non-bank options.
Over $500,000,000 facilitated in funding across the past decade for 1,000+ borrowers.
We service Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
Practical lending strategies aligned to how you hold and occupy the property.

Why buy rather than lease your spray painting workshop

Spray painting businesses carry high fit-out costs that are hard to move. Booths, bake ovens, compressors, extraction, filtration, fire systems, paint mix rooms and explosion-protected electrics are expensive to install and re-install. Location also matters. Proximity to panel beaters, dealerships, marine yards or industrial clients, truck access, three-phase power and compliant ventilation paths tie you to specific industrial pockets.

Sector demand is steady, with recurring insurer work in automotive refinishing, fleet maintenance, industrial coatings and marine. Mortgage repayments replace rent and convert occupancy cost into equity in a hard asset.

Main drivers:

Protect the fit-out: Own the walls around your booth, ducting, flammable storage and electrical upgrades so landlord changes do not compromise approvals or workflow.
Control and approvals: Manage ventilation runs, roof penetrations and power upgrades without landlord delays or retrofit negotiations.
Cost certainty: Fix long-term occupancy costs and reduce exposure to rent increases at lease renewal.
Equity build: Repayments build an owned asset that can support future equipment upgrades or expansion.

Buying will not suit every plan. If your lease has limited term left and a planned relocation is likely, or if capital would earn a higher return in additional booths, staff or a new contract start-up, it is worth comparing the outcomes side by side first. The decision stays with you, and it is one we are glad to talk through.

The mechanics of a spray painting workshop mortgage

Deposit and LVR A spray painting workshop is standard commercial security, valued on comparable sales and achievable rent, so owner-occupiers can commonly borrow up to 80 per cent of the property value. That puts the deposit from around 20 per cent. The major banks assess owner-occupier commercial lending case by case rather than publishing a set figure, which is where a broker earns their place. Some owners fund up to 100 per cent of the purchase price by adding equity in another property as security.

Loan term and structure Terms commonly run 15 to 25 years, with non-bank lenders often extending to 25 or 30 years and the banks usually capping at 10 to 15. Structure can be principal and interest for straight-line equity build, or interest only for a period to prioritise cash flow during fit-out or a move.

Security and serviceability The property is the primary security. A spray booth, ducting and extraction that are built into the structure read as fixtures that support the valuation, while free-standing equipment sits on its own facility. Lenders assess business financials, BAS, tax returns and bank statements to test serviceability. For spray painters, we address seasonality, insurer payment cycles and one-off equipment purchases so the numbers reflect ongoing capacity.

Owner-occupier treatment Lenders generally price and approve more favourably where the trading business occupies the premises, given the alignment between revenue and the property use.

Structuring the finance

Many spray painting operators hold the workshop in a separate entity, such as a company or trust, and lease it to the trading business at a commercial rent. A lender then reads that inter-entity rent as part of the serviceability line, and the arrangement keeps operating risk and the property asset on separate ledgers with cleaner accounting for rent and outgoings. We line up lenders comfortable with whichever version of this you already run, and work through the numbers with you before anything goes to a lender.

Buying through an SMSF A commercial workshop generally meets the business real property test, so a self-managed super fund can hold the premises and lease it to your trading company at market rent, paid in full and supported by an independent appraisal. The property sits in a separate holding trust with recourse limited to that one asset, the fund needs its own deposit because a limited recourse arrangement cannot be cross-collateralised, and SMSF lending on standard commercial security gears to between 65 and 80 per cent. The trade-offs include lower LVRs, liquidity constraints and additional setup and running costs. We arrange the loan and find the lenders who will take a spray painting workshop as SMSF security, while your SMSF specialist and accountant sign off the fund's tax, super and ownership requirements before contracts are exchanged.

How lenders size up the deal

Business financials and stability: Two years financials and year-to-date performance, noting insurer-driven work and contract mix.
Serviceability metrics: Debt service coverage, sensitivity to paint price changes, wage load and booth utilisation.
The property: Zoning, building spec, three-phase power, roof height, roller access and suitability for approved spray booth installation.
Valuation: Independent valuation that considers condition, location and comparable sales, with the built-in booth and ducting counted as fixtures.
Deposit and equity position: Cash, term deposits or the ability to leverage your equity in other property.
Lease and occupancy: For investment purchases, lease quality. For owner-occupiers, proposed rent if held in a related entity.
Compliance and risk: Fire systems, ventilation paths and documented approvals. Because refinishing uses solvents and isocyanates, a commercial valuation carries a site contamination questionnaire, so clean, well-documented handling and storage records help the assessment.

A specialist broker who understands spray painting operations can present these points clearly to credit teams, so the file is read on its merits.

A scenario worth considering

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

Situation: A Brisbane spray painter renting a 600 m² tilt-panel unit, sunk fit-out $260,000 across booth, bake oven, compressors and ducting, lease expiry in 14 months, revenue $2.4m, EBITDA $380,000, home equity available $400,000.
Options weighed: Buy the current unit at $1.6m for minimal downtime, buy a larger unit nearby at $2.1m to add a second booth, purchase land for a purpose-built shed with a longer lead time, or continue leasing to keep capital free.
Structures considered: The unit held in a property trust with a corporate trustee and leased at market rent to the trading company, or an SMSF with a limited recourse arrangement for a long-term hold.
Indicative lending: An owner-occupier LVR around 70 to 80 per cent with principal and interest, and interest only considered for 12 to 24 months to smooth cash flow during relocation and booth re-install. Any fit-out top-up would be aligned to the valuation.
What each path could look like: Buying the current unit preserves approvals and ducting runs and reduces downtime; the larger unit supports a second booth and higher throughput at higher repayments; a build-to-suit delivers the ideal layout with more capex and time risk; continued leasing keeps flexibility while the landlord retains control over roof penetrations and upgrades.
How we would approach it: we would map the ranges, structures and repayments, then set them side by side so the owner can choose. The figures above are illustrative, not confirmed outcomes.

Related finance for a spray painting workshop

Asset finance for spray painting equipment: Booths, bake ovens, compressors, HVLP systems, explosion-protected fans, filtration and mixing benches, arranged as spray painter equipment finance on its own facility.
Fit-out and refurbishment finance: Paint mix rooms, ducting, fire-rated walls, LED lighting, extraction upgrades and compliant flammable storage.
Working capital: Cashflow finance for a spray painter to smooth insurer payment cycles and bulk paint purchases.
Business overdraft: A revolving buffer for wages, BAS and month-end peaks.
Refinancing and debt consolidation: Restructure multiple equipment contracts and lower total repayments where serviceability supports it.
Construction and renovation: Build a purpose-designed shed, add a second booth or upgrade power supply and ventilation.
Business or premises acquisition finance: Buy the freehold you occupy, acquire a competitor or buy out a partner.

Owning the premises can create equity that supports future equipment upgrades, while a refinance can consolidate facilities into a clearer structure.

Talk to a broker who understands spray painting workshops

Ardent Capital Group arranges and structures finance around how you intend to hold and occupy the property, then matches lenders to your profile and timeline. This is the kind of purchase where the structure and the strategy matter as much as the rate, and we give owners clear advice on both.

We service Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas, and have helped facilitate over $500,000,000 in funding across a decade for more than 1,000 borrowers.

If buying your premises is on the table, our team can set out your options clearly, without pressure. A good place to start is our spray painter property loan page.

Frequently asked questions

How much deposit does a spray painter typically need to buy a factory unit? Owner-occupiers can commonly borrow up to 80 per cent of the value, so a deposit from around 20 per cent. The major banks assess owner-occupier commercial lending case by case rather than publishing a set figure.

Can I use my SMSF to buy my spray painting workshop and lease it to my business? Yes, commercial premises generally meet business real property rules, and your SMSF can lease to your trading company at market rent. Expect lower LVRs and additional setup and running requirements.

Will lenders consider a building with an installed spray booth and flammable storage a higher risk? Credit teams focus on compliant approvals, fire systems, ventilation design and hazardous storage. Well-documented compliance can support the valuation and credit decision.

Can I finance the booth and fit-out alongside the property purchase? Yes, fit-out can be funded via separate asset finance or included within a blended package where valuation supports it. Many owners combine equipment finance with the commercial mortgage.

How do lenders assess serviceability for a spray painter with insurer-driven work and seasonal swings? They look at two-year financials, margin stability, booth utilisation and cash conversion from insurers. Normalising for one-off equipment purchases is important to show ongoing capacity.

What is a common loan term for an owner-occupied spray painting premises? Terms commonly run 15 to 25 years, with principal and interest preferred. Interest only can be used for a period to manage cash flow during relocation or upgrades.

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.