Glenclair Commercial Pricing Matrix
Commercial Pricing Matrix · 20 October 2026
An indicative margin matrix over 90-day BBSY for mid-market commercial facilities, cut by the two numbers credit committees actually price on: the borrower's probability of default (PD) and the lender's expected loss given default (LGD). It is a companion edition to the Glenclair Pricing Index.
The ranges are illustrative major-bank and strong second-tier ADI pricing for full-documentation, going-concern facilities, typically $2m–$20m+, primarily secured by commercial property or solid business assets.
The matrix — customer margin over 90-day BBSY (bp)
Rows are approximate one-year PD bands. Columns are LGD bands, driven mainly by LVR and security quality.
| PD band (1-year) | LGD ≤ 15% Very strong security · LVR ≲ 50% |
LGD 15 – 30% Good security · LVR ~50 – 65% |
LGD 30 – 45% Standard commercial · LVR ~65 – 75% |
LGD > 45% Higher LVR or weaker security |
|---|---|---|---|---|
| Very low < 0.25% |
80 – 130 | 100 – 160 | 140 – 200 | 180 – 250 |
| Low 0.25 – 0.75% |
110 – 160 | 140 – 200 | 180 – 250 | 230 – 320 |
| Moderate 0.75 – 2.0% |
150 – 210 | 190 – 260 | 240 – 330 | 300 – 420 |
| Elevated 2.0 – 5.0% |
200 – 280 | 250 – 350 | 320 – 450 | 400 – 550+ |
| High > 5.0% |
280 – 400+ | 350 – 500+ | 450 – 650+ | 550 – 800+ or decline |
Indicative major-bank / strong second-tier ADI customer margins, mid-October 2026. Excludes line fees and unused-limit fees. Not a quote.
Lower end of each range
- Clean industrial, medical or owner-occupied
- Strong tenant or cash flow
- Simple security, good DSCR / ICR
- Favourable industry, competitive tender
Higher end of each range
- Hospitality, short WALE or specialised use
- Thinner coverage
- More complex group structure
- A credit committee already heavy in the sector
Where your file sits
- PD, the row. Mapped approximately to major-bank internal rating scales. Exceptional and Strong grades sit in the very-low to low bands. Pass and Good grades dominate the moderate band. Weak and Doubtful grades sit in elevated or high, and often face restricted new lending as well as higher pricing.
- LGD, the column. Driven primarily by LVR, asset quality and liquidity, location, lease strength and the lender's recovery assumptions. Low-LVR prime commercial property produces the lowest LGDs; higher LVR or specialised assets push LGD higher.
Convert it to an all-in cost
The matrix shows the customer margin only. Add the line fee, and any unused-limit fee, before comparing offers. A 150 bp margin with a 60 bp line fee is a common structure on a solid deal: 210 bp all-in on a fully drawn facility, or about 6.91% against 90-day BBSY Bid of ~4.81%.
Why there is no published bank grid. Banks do not price on a pure PD × LGD table. Expected loss (EL = PD × LGD × EAD) is only one input: the margin also carries the cost of the capital held against the loan, operating costs, liquidity and a risk premium. Two lenders with the same view of your risk can still be 50 bp apart.
Non-bank and private credit
For equivalent risk, non-bank and private lenders typically price 100–400+ bp wider than the ranges above, reflecting higher funding costs and a different risk appetite. The public Glenclair Pricing Index puts non-bank and private margins on commercial property at roughly 210–880 bp, depending on LVR and asset class. What that buys is speed, structure and appetite for files the matrix prices at the high end or declines.
These figures are directional and move with bank appetite, capital settings and competition. The reliable test is a competitive tender, not any single grid. Tell us the asset class, LVR and rough financials and we'll narrow the range for your deal.
FAQs
Do banks publish a PD × LGD pricing grid?
No. Banks price on internal risk grades, and the margin embeds capital costs, operating costs, liquidity and a risk premium on top of pure expected loss (EL = PD × LGD × EAD). The Matrix is a directional read of where those inputs typically land, not a lender's grid.
Does the margin include the line fee?
No. Line fees of 40–80 bp on the limit are common at the majors and sit outside the customer margin. Always convert to an all-in drawn cost before comparing offers.
How does non-bank and private credit compare?
Typically 100–400+ bp wider than the major-bank ranges for equivalent risk, reflecting higher funding costs and a different risk appetite. The public Glenclair Pricing Index puts non-bank and private CRE margins at roughly 210–880 bp, depending on LVR and asset class.
Is this a quote?
No. The ranges are illustrative and move with bank appetite, capital settings and competition. Actual margins vary with asset class, industry, cash-flow quality, covenants, relationship and lender appetite. The reliable test is a competitive tender.
Test your deal against the matrix
Share what you can and we'll tell you where the file sits and what a tender is likely to clear at:
- Asset class and security
- Facility size and LVR
- Approximate risk grade or headline financials (EBITDA, ICR / DSCR)
- Current lender, margin and line fee, if refinancing
Thanks, we've got it. We'll be in touch within one business day.
Independent commercial finance · Paid by lenders, aligned to the borrower · Glenclair Financial, Sydney · glenclair.com.au. Indicative, illustrative ranges as at mid-October 2026. Not a quote, not an offer, and not a comparison rate. Actual margins vary with asset class, industry, cash-flow quality, covenants, relationship, competition and lender appetite.