To refinance a function venue's debts is to review the mortgage over the venue, the refurbishment, the kitchen and the sound and lighting, then choose what to move, merge or keep. Each of those choices moves two figures: the venue's monthly outgoing to lenders, and the total interest before the final repayment.
Why do the repayments feel heaviest in July, when the calendar is at its emptiest? Can the ballroom and bridal suite be refreshed without the cost landing on the quiet months? Are the interest-only repayments on the venue, which cover the interest and none of the balance, about to end while the loans on the kitchen and the sound system are still running? And why don't the deposits sitting in the account count as income yet?
The ABS counted 118,804 marriages registered in Australia in 2025, 1.7% fewer than in 2024, according to Marriages and Divorces, Australia, 2025. More than 52,000 marriages that year took place on a Saturday.
Whether it is the mortgage on the building or the finance on last year's lighting rig, Ardent Capital Group can assist with refinancing it. We would be happy to sit down with you and the venue's statements.
Why a function venue's repayments feel heavy in the quiet months
A function venue earns its income one event at a time, and the couples and companies who book decide when the busy weeks fall. The loans ask for the same amount in a slow winter month as in a fully booked October.
- The calendar. In the ABS figures, the most popular wedding dates in 2025 fell in October, November and April. A venue that relies on weddings books its busiest Saturdays in spring and autumn, and its fixed costs run through winter as well.
- Deposits held for future events. Couples and companies may pay a deposit when they book a date, months before the event. Until the event runs, the deposit is payment for a service the venue has not yet provided.
- Event-night wages. Chefs, wait staff, bar staff and casual crews are rostered around each event, while the core kitchen and sales team are paid all year.
- The refurbishment cycle. Rooms are refreshed between seasons, and the work is paid for before the bookings it helps win arrive.
A refinance cannot move the events. What it can alter is the share of each month's takings that goes to lenders, and the number of years that share is paid.
Example: a reception venue's loans side by side
Each of the venue's debts costs a different amount each month. The venue in this example is illustrative. Its owner has the freehold of a reception venue with a ballroom, a ceremony lawn and a commercial kitchen. Holding the freehold means owning the land and the building, rather than leasing them. The refurbishment, the kitchen and the sound and lighting each sit on a loan of their own.
| Debt | Balance | Assumed rate | Months to run | Monthly repayment |
|---|---|---|---|---|
| Property loan on the venue | $2.2M | 7.25% (assumed) | 180 months | $20,083 |
| Loan on the ballroom, bridal suite and bathrooms refurbishment | $280k | 11% (assumed) | 48 months | $7,237 |
| Equipment loan on the kitchen and cool room | $110k | 10.5% (assumed) | 36 months | $3,575 |
| Equipment loan on the sound, lighting and dance floor | $60k | 12% (assumed) | 24 months | $2,824 |
| Total | $2.65M | $33,719 |
The venue owes $2.2M on its property loan at an assumed 7.25%, with 180 months to run, and pays $20,083 a month. All four repayments together come to $33,719 a month. That figure eases in steps as the shorter loans finish: to $30,895 from month 25, to $27,320 from month 37 and to $20,083 from month 49.
The venue also has a $200k overdraft with $120k drawn. An overdraft lets the venue borrow on its account up to an agreed limit, then repay as bookings are paid. At an assumed 10%, the interest on that balance is about $1,000 a month, and the overdraft is left out of the comparison that follows. Those percentages exist only for the arithmetic of this venue, and no lender has offered them.
What changes when a venue's loan is refinanced
Refinancing puts one or more of the venue's loans onto a new loan with fresh terms. Three features of the new loan shape what happens to the venue's cash in a quiet July and to the cost over the life of the loan.
- Interest rate. With the months left unchanged, a cheaper rate lowers what the venue pays each month and in total. Behind any rate quoted sit three things: what the venue offers as security, its event trading, and the credit records of its company and directors.
- The term. The term is how long the loan runs, counted in months. More months make each repayment smaller. Yet the debt lingers, and interest keeps building for every extra month it is outstanding.
- What secures it. Security means the assets a lender may claim if repayments stop, such as the venue building or the kitchen equipment. Property-backed loans generally come at lower rates than loans resting on the business by itself. The property is then at risk if that debt is not repaid.
Each loan in the example is amortising, which means it runs down to nil by the end of the term, unless it ends in a balloon, a lump sum left to the final repayment. Every repayment pays the month's interest first, and the rest reduces the balance. Since interest accrues on whatever balance remains, its slice of each payment is largest near the start of the loan.
Worked example: the venue mortgage in its first month
Pulling apart one monthly payment on the venue's mortgage shows how much of it is interest in the early years. Month one on the $2.2M property loan, at the assumed 7.25%, carries $13,292 of interest. The other $6,791 of the $20,083 repayment comes off the balance. After a year of repayments, about $84,300 has come off what the venue owes.
The same arithmetic explains the jump at the end of an interest-only period. On this loan, an interest-only repayment would be about $13,292 a month. Once the loan switches to principal and interest over 180 months, the repayment becomes $20,083, about $6,791 a month more. Principal means the amount borrowed, so these repayments start clearing the debt alongside the interest.
Refinancing each loan the venue carries
The venue's loans bought very different things, from the building to the ovens, and any one of them can be refinanced without the others.
The property loan on the venue
Owning the freehold means the mortgage over the venue is usually the biggest balance, and the building is where any equity has built up. Here equity means the building's value over and above the mortgage on it. A ballroom, a banquet kitchen and a ceremony lawn suit few other uses.
The usual triggers are an interest-only period or a loan term coming to an end, an annual review, or equity built up since purchase. That equity can be released to clear the venue's other debts or to fund a refurbishment or a ceremony space, subject to the lender. Bank terms on commercial property commonly run 10 to 15 years, and non-bank terms 25 to 30.
Where the venue's property loan sits on a fixed rate, refinancing it early can bring a break cost, a fee for ending a fixed rate early. The more rates have fallen since the rate was fixed, the bigger it is. Ask the current lender to put the break cost in writing before comparing anything. Refinancing a function venue you own goes further into this loan.
The loan on the refurbishment
The refurbishment is what a couple or an events manager notices first on a site visit. In this example it paid for the ballroom's carpet and finishes, the bridal suite and the bathrooms. In a venue the owner holds, those works become part of the building.
A loan for a refurbishment is commonly unsecured, meaning no asset is pledged for it, or secured by a general security agreement. That is a lender's registered claim over the business's assets, from the furniture to the money it is owed. Refinancing could shift it to a cheaper rate, spread it over more months, or fold what is owed into the venue's mortgage. Rolled into the property loan over 180 months at an assumed 6.75%, it cuts the monthly outgoing by $5,374 and the interest by $12k.
Next season's refurbishment can be funded within this refinance too, if the lender agrees. Builders' quotes show what the money will pay for and when the works will run.
Kitchen and cool room equipment
A function kitchen plates a full dinner for every guest at once. Each piece of its equipment has an effective life. That is the number of years an asset can be used to produce income, taken from the ATO's determination or worked out by the business. It is a tax figure, not a promise of how long the equipment will run.
The ATO's effective life determination gives the following under its heading for cafes, restaurants, pubs, bars and clubs:
- Commercial cooking equipment, including ovens, grills and cooktops: 10 years
- Dishwasher machines: 8 years
- Refrigeration such as blast chillers and refrigeration cabinets: 10 years
- Insulation panels in cool and freezer rooms: 40 years
Which heading fits a venue is its accountant's call. The ovens and cool room themselves commonly secure the equipment loan on them. If that loan is cleared ahead of schedule, the contract may add an early payout charge, a fee for paying it out sooner. The equipment contract states how that charge is calculated. Here the loan on the kitchen has 36 months left on ovens with a ten-year life.
Sound, lighting and the dance floor
The sound system, lighting rig and dance floor have some of the shortest effective lives in the venue. The same determination gives audio visual equipment and freestanding dance floor assets, including fog machines and strobe lights, an effective life of 5 years.
Here the loan on them has 24 months left, inside that 5-year life. When a supplier offers new lighting on finance, the old loan and the new one become one decision.
The overdraft through winter, and the ATO
The overdraft is what covers the venue's costs between the last autumn wedding and the first spring booking. Rolling what is drawn into a term loan pays the overdraft off, and the spare room the venue had for next July disappears with it.
Where BAS or PAYG owed to the ATO is being paid off under a payment plan, a business loan can include the amount to clear it, if the lender agrees. The BAS, the venue's business activity statement, reports PAYG, the income tax withheld from staff pay plus instalments of its own tax, alongside the goods and services tax (GST). Interest on the venue's business loans may be deductible, unlike ATO interest charges, which lost their deductibility on 1 July 2025. The venue's accountant can say whether either applies.
Combining the venue's loans
With the four loans understood separately, the owner can see how the property, refurbishment and equipment debts might be combined. Merging debts can lower the monthly bill and still lift the lifetime interest.
Worked example: five ways to carry the venue's $2.65M
Each choice starts from the same four loans. Each is measured against leaving them as they are, per month and in interest.
| Choice | Monthly outgoing | Against today, monthly | Interest yet to pay | Against today, interest |
|---|---|---|---|---|
| Leave the four loans untouched Today | $33,719 | Where it starts | $1,509k | Where it starts |
| Property loan at a lower rate, still 180 months | $33,104 | $615 less | $1,398k | $111k less |
| Roll the refurbishment into the property loan over 180 months | $28,345 | $5,374 less | $1,497k | $12k less |
| One loan for all four debts, 180 months | $23,450 | $10,269 less | $1,571k | $62k more |
| One loan for all four debts, 25-year term | $18,309 | $15,410 less | $2,843k | $1,334k more |
Illustrative, rounded figures. The rates are assumptions chosen for the sums, never quotes and never market rates. The overdraft, break costs, early payout charges and the fees to set up and value a new loan sit outside these figures.
Spreading all four loans over 25 years brings the repayment down by $15,410 a month. It also adds $1,334k of interest, because the balances stay owing for many more months. Inside that loan, the $110k kitchen balance alone would cost about $118k in interest over 25 years. Left on its own loan, it costs about $19k over its last 36 months.
A lower rate on the property loan alone works the other way. It saves $111k of interest and keeps the 180-month end date, though the monthly figure eases by just $615.
A single smaller repayment eases the thin winter months, and the added interest shows what that costs over the years. Which choice suits the venue depends on its bookings, the next refurbishment and how long each piece of equipment has left. Our part is to collect each payout letter and set the choices side by side on repayment and interest. A payout letter sets out the sum that would settle a loan in full on a particular date. The one you pick then goes to lenders whose policies fit an events business. These figures are not a quote and do not mean approval.
Security for the venue's new loans
Several assets could back the new loans, and each brings a different trade-off for the owner.
- The venue freehold. The venue building can secure the kitchen, refurbishment and lighting debts as well as its own mortgage, depending on the valuation and the lender.
- The business's assets. A general security agreement is recorded on the PPSR, the national register of security interests in personal property. It does not cover land, buildings or fixtures to land. Once the old loan is cleared, its entry comes off the register and the incoming lender lodges a new one.
- Directors' guarantees. A guarantee makes the director personally liable for the debt if the company cannot pay. Business loans commonly carry one from each director.
- The home. Pledging the family home might make a cheaper rate or extra years available, and the home then becomes security for the venue's borrowing too. That choice belongs to the owner, weighed against the added interest in the worked example. The house's own mortgage is the subject of our home lending for business owners.
When a trust owns the venue and a company runs it
Sometimes a family trust holds the venue's title while a company runs the events. The application then covers both entities and every guarantor, including the rent the company pays the trust and each director's own borrowing. Drawing on a background in financial planning, the Ardent Capital Group team can plan where each new loan should sit between the venue's trust and its events company. Questions of tax and of who owns what go to your accountant.
Getting ready to refinance the venue
Peak months, quiet months and booking deposits all leave their mark on a venue's accounts, and those accounts go in with the application.
Timing around the booking calendar
Some moments in a venue's year shape the cost of a refinance and the trading record that goes with it.
- A fixed rate with time still on it. Getting the payout figures in writing, showing the amount that settles the venue's loan on the chosen date, answers the question early. If the break cost outweighs the saving from a new rate, the refinance can be picked up again as the fixed term nears its end.
- The end of an interest-only period. Starting well before the date gives time to compare lenders before the higher repayment begins.
- Accounts still to be lodged. Overdue BAS and tax returns are best lodged before applying, which keeps every figure current.
Bookings that have not happened yet
A venue's diary is full of events that have not yet run, and none of them is income yet. Forward bookings are the events booked but not yet held.
- Held deposits. Deposits pay for events the venue has not yet held. In the accounts they are a liability, not income, and it helps to show them apart from earned revenue.
- The liquor licence. Each state issues its own licences, and the current one goes in with the application.
At a function venue, the property loan may come with an annual review. The lender can ask about how the venue has traded and what is already booked, so a slow winter sits beside the weddings and events taken for the months ahead. Keeping the licence current helps, and the review is a natural time to weigh up other lenders. Our guide covers getting a venue ready for its loan review.
Documents to gather
The venue's booking system, its accounts and its licence file hold nearly everything a lender requests.
- A payout letter from every current lender, showing the break cost or early payout charge, if any
- The venue's ATO statement of account, its latest BAS, and lodged accounts and tax returns covering two years
- Recent statements for each business account, with held deposits shown apart from earned revenue
- A forward bookings report
- The current liquor licence and any council approvals for the venue's use
- Invoices for the kitchen and lighting, builders' quotes for planned works, and statements for each director's personal loans and cards
Questions function venue owners ask about refinancing
We've had two slow winters in a row. Is refinancing still open to us?
It can be, subject to the lender. Twelve months of trading and the forward bookings show where the winter months sit in the year.
Can the overdraft stay as it is while the other loans move?
It can, subject to the lender. The worked example leaves it outside the refinance, so its limit is still there for the quiet months.
Can I refinance only the loan on the kitchen equipment and leave everything else alone?
Subject to the lender, that one loan can be refinanced by itself. A written payout figure for that loan shows the early payout charge before you compare offers.
Will the venue need a new valuation?
If the lender orders one, its fee is one of the costs to weigh against any saving.
The supplier has offered us a new lighting rig on finance. Should the old loan go into it?
They are best looked at as one decision. Paying out the old loan when the new equipment is financed means only one loan runs against the lighting at a time.
Our interest-only period ends in six months. What happens if we do nothing?
The loan moves to principal and interest on the current lender's terms, and the repayment rises. In the worked example, that step is about $6,791 a month on a $2.2M loan.
We're adding a ceremony space next year. Should it be part of this refinance?
The two can go in one application, subject to the lender. Builders' quotes and the planned timing show what the money pays for and when the space will start taking bookings.
Can the loan on the refurbishment join the property loan while the kitchen equipment stays on its own loan?
It can, subject to the lender. That cuts the monthly outgoing by $5,374 and the interest by $12k in the worked example, with the kitchen and lighting loans kept as they are.
The licence is moving to a new licensee. Does that affect a refinance?
Mention the transfer in the first conversation. The transfer paperwork goes in with the application, so the lender sees who will hold the licence when the new loan begins.
Can the venue's loans be refinanced without using my home?
That can be an option, subject to the lender. The loans can rest on the venue freehold, the business's assets and the directors' guarantees instead. Adding the home is a choice the owner makes with the trade-off in view.
Working through your venue's loans with us
Refinancing sets each of the venue's loans against the booking calendar, the working life of the ovens and lights, and the value of the building. Ardent Capital Group can assist across the venue's mortgage, the loans on the refurbishment and the kitchen, and the function venue business loans and overdrafts that carry the quiet months. Your accountant checks the tax side before any paperwork is signed. Whenever it suits, bring the venue's loan statements and next season's bookings, and we would be pleased to talk them through with you.
