Commercial Loan
Highlights of the
Commercial Loan
(1) Flexible loan amounts ranging from hundreds of thousands to millions. (2) Longer repayment terms, often 5 to 25 years. (3) Many costs associated with commercial loans, like interest payments and property depreciation, can be deducted from your taxable income.
Eligibility
Here are some of the eligibility requirements for the Commercial Loan program. Select ‘Get Started’ to check if you’ll be a good fit.
Proof of steady revenue and positive cash flow
Both the business and the owner’s credit scores are reviewed. A score of 680+ is often preferred.
The commercial property being financed usually serves as collateral.
A solid business plan outlining how the property will be used and how the loan will be repaid
Down payment of 15-30% is typically required, depending on the loan type and lender
Most lenders prefer businesses that have been operating for at least 2 years, though startups may qualify with strong financials or additional collateral.
Common Questions
How long is the repayment term?
Repayment terms are usually between 5 to 25 years, depending on the loan structure and lender.
Can I get a commercial loan with bad credit?
It’s possible, but lenders may require a larger down payment, higher interest rates, or additional collateral to offset the risk.
Is a personal guarantee required?
In most cases, yes. Business owners are often required to personally guarantee the loan, especially for small and medium-sized businesses.
Are there prepayment penalties?
Some commercial loans come with prepayment penalties if the loan is paid off early, so it’s important to review the loan terms.
What types of properties can be financed?
Commercial loans can finance office buildings, retail spaces, warehouses, multifamily properties, and more.
How long does the approval process take?
Commercial loan approvals often take 30-90 days, depending on the complexity of the loan.
Other Info
Loan Types Vary – There are different types of commercial loans, including:
SBA 7(a) Loans – Great for small businesses with flexible terms and lower down payments.
Conventional Commercial Loans – Ideal for established businesses with strong financials.
Bridge Loans – Short-term loans used until permanent financing is secured.
Balloon Payments May Apply – Some commercial loans come with a balloon payment, meaning you’ll make smaller monthly payments with a large lump sum due at the end of the term.
Environmental Assessments May Be Required – Depending on the property, lenders may require an environmental site assessment to check for any potential hazards or contamination.
Tenant Leases Can Impact Approval – For income-generating properties, lenders may evaluate the quality and length of tenant leases, as they impact the property’s cash flow.
Personal Assets May Be at Risk – If a personal guarantee is required, failure to repay the loan could put your personal assets at risk.