Thursday, June 13

Ways of Getting Loan for Purchasing Commercial Properties

Lenders are always offering homes on loan, but this is not the case with commercial properties. Buying residential property is accessible, but commercial properties are very tricky. Commercial properties are of two types: office Space and Retail outlets. A commercial loan is basically for financing of fixed property used by the borrowers for commercial use.

The borrower can firstly take the loan and then provide for the rent. But the properties should be used purely for professional purposes. Fast Commercial Capital is a commercial bridge lender of loans for commercial purposes. All loans are transparent and also provide short-term loans. Don McClain started with the initiative and is going strong even today.

How to get commercial loans?

Commercial loans are used to renovate any commercial property. Likewise, the property must be owner-occupied, and the business should take place in 51% of the building. Lenders are looking for various finances of commercial loans.

There are various choices for getting commercial loans. Compare commercial loans from multiple lenders to know which one works the best.

  • Banks

Banks provide commercial financing for so many properties. Secondly, the typical loan size for commercial banks is about $1 million. It offers reasonable rates while delivering long-term finances. But the banking process is slow, and only borrowers give excellent credit.

  • SBA 504 loans

These are the particular loans designed by SBA used for real estate or long-term equipment. There are two types of loans: the bank, 50% of the loan, and Certified Development Company, making up to 40% of the loan. But you have to put about 10% down.

The term of loans is for about 20 to 25 years. Further, the down payment is low, but the borrowers have to meet the SBA size standards.

  • Conduit lenders

These are the commercial mortgages that are used together for all kinds of commercial loans. These lenders finance about $ 1 million to $3 million. These lenders even go up to $50 million with tenure of 5 to 10 years. Amortization is for more extended periods keeping the payments lower.

The interest rates are meager, but there is the balloon payment right after 5 to 10 years. There are pre-payment penalties that borrowers have to pay in case they can’t make the payment on time.

Should you refinance? The answer always boils down to money |
  • P2P markets

These are the crowdlending platforms offering to many individual lenders. These lenders give for short-term finances to bridge the gap. It happens till the long-term finances are secured.

The periods provide fast turnaround rates with an easy application process. However sometimes, lenders can charge high-interest rates, and there are few regulations for traditional lenders.

  • SBA 7(a) loans

Through this, you can borrow up to $5 million from any affiliated lenders. It can be used in the construction of the new property or the purchase of buildings. The tenure of the loans is for 25 years. There are competitive rates in the markets, but the needs limit the company size.


The commercial loans are provided only for professional purposes, and it has to be maintained. About 60% of the building have to be used for commercial use.