Short-term commercial property finance for BV investors
When purchasing and renovating an investment property through a Dutch BV, speed and flexibility often matter more than a 30-year fixed rate. Short-term commercial property finance from specialised private lenders allows you to act quickly, based on the current value and the projected value after renovation.
Bouvy Advies helps you compare these facilities, calculate the full cost and align the structure with your liquidity and long-term investment strategy.
When does a private lender make sense?
A specialised private real estate lender can be particularly relevant when:
- You need to complete quickly and traditional bank processes are too slow or inflexible.
- The property requires renovation, conversion or redevelopment before it becomes fully “bankable”.
- You plan to use short-term finance (for example 6–18 months) and refinance to a long-term bank or buy-to-let mortgage afterwards.
- You invest through a BV and need tailor-made solutions in terms of loan-to-value (LTV), construction deposit and securities.
These lenders focus primarily on the project, the collateral value and feasibility, rather than purely on standard retail lending criteria.
Typical product features
While each lender has its own policy, many offers in this segment share the following characteristics:
- Loan amounts from approximately € 250,000 up to € 15,000,000.
- Maximum LTV up to around 75–80% of market value (current value and/or after renovation).
- Bridging or project finance with terms up to roughly 18 months.
- Monthly interest rates starting from around 0.65% (depending on risk profile and project).
- Construction deposit (bouwdepot) up to 100% of the renovation budget, paid out based on invoices.
- One-off arrangement / entry fee, for example from 2.25% of the (total) loan amount.
Bouvy Advies translates these product terms into clear scenarios, so you can compare options side by side before you commit.
Example calculation (anonymous and indicative)
The following example is anonymised and for illustration purposes only. Figures are rounded and may differ per lender. This is not personal advice.
Project set-up
- Purchase price (via BV): € 300,000
- Renovation budget: € 100,000
- Appraised market value now: € 300,000
- Appraised market value after renovation: € 500,000
Financing structure
- Loan for purchase: 75% of € 300,000 = € 225,000
- Construction deposit: € 100,000 (100% of the renovation budget)
- Total loan amount: € 325,000
Lending terms (indicative)
- Monthly interest on purchase loan: 0.65%
- Monthly interest on construction deposit: 1.00%
- Term: 6 months
- Entry fee: 2.25% on the total loan amount (€ 325,000)
Entry fee
- Entry fee: 2.25% × € 325,000 = € 7,312.50
This fee is often (partly) financed from the loan or paid at completion. For the profit calculation, we treat it as a direct cost.
Interest over 6 months
We assume the purchase loan is fully drawn for 6 months and the construction deposit is on average 50% drawn (a realistic assumption for phased renovation).
- Monthly interest on purchase loan: 0.65% × € 225,000 = € 1,462.50
- Interest on purchase loan over 6 months: 6 × € 1,462.50 = € 8,775
- Average construction deposit outstanding: € 50,000
- Monthly interest on construction deposit: 1.00% × € 50,000 = € 500
- Interest on construction deposit over 6 months: 6 × € 500 = € 3,000
Total interest paid over 6 months: € 8,775 + € 3,000 = € 11,775.
Total project cost (excluding transfer tax and selling costs)
In this simplified example we include:
- Purchase price: € 300,000
- Renovation costs: € 100,000
- Entry fee: € 7,312.50
- Interest (6 months): € 11,775
Total project costs before tax and excluding additional acquisition and selling costs (such as transfer tax, notary, estate agent):
€ 300,000 + € 100,000 + € 7,312.50 + € 11,775 = € 419,087.50
Profit when selling at € 500,000 after 6 months
- Sales proceeds: € 500,000
- Total project costs: € 419,087.50
Gross profit before tax and before additional acquisition and selling costs:
€ 500,000 − € 419,087.50 ≈ € 80,912.50
In rough terms, the gross profit in this example is about € 80,000 over a six-month period, before tax and excluding items such as transfer tax, notary fees, agent fees and any penalties or additional charges. In practice, we include these items in a tailored calculation for your project.
How Bouvy Advies adds value
As an independent adviser, Bouvy Advies works with several private real estate lenders that specialise in fast commercial property finance with construction deposits.
We support you by:
- Assessing your project (purchase, renovation, value now/future, rental potential).
- Comparing lender terms (monthly interest, fees, LTV, construction deposit rules, term).
- Calculating total cost, liquidity impact and refinancing scenarios.
- Coordinating with valuers, notaries and, where relevant, your accountant or tax adviser.
This gives you a realistic, numbers-based view of both the opportunities and the risks, before you tie up capital in a project.
Schedule an initial consultation
Are you planning to purchase and renovate an investment property through your BV and looking for short-term commercial property finance with a construction deposit? Get in touch with Bouvy Advies for an initial, no-obligation calculation and a comparison of leading private lenders in the Dutch market.