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Best Commercial Real Estate Loans June 2024

Whether you're a business owner seeking to expand your operations, an investor looking to diversify your portfolio, or a developer aiming to bring your real estate project to life, you might consider a commercial real estate loans to help you achieve your financial and real estate objectives. Find and compare the best real estate loan providers, rates and, terms for your needs.

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Editor's Choice
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Key Facts

  • Credit Score: 550
  • Age of business: 12+ months
  • Monthly revenue: Varies
  • US citizenship: Required for all owners
  • Term length: Varies

Pros

pros iconMultiple financing options designed to help businesses grow and succeed

pros iconConvenient shop and comparison tool

pros iconFree service

pros iconMatched with experienced Funding Advisor who helps every step of the way

Cons

cons iconLoan terms and conditions not disclosed until after completing an application

cons iconOnce deciding upon a product, you’ll work with the lender instead of Fundera

cons iconMust have been in business for at least 1 to 4 years to qualify for funding

cons iconPotentially high interest rates and eligibility requirements

LIMITATION OF LIABILITY AND WARRANTY DISCLAIMER. 10.1 Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL FUNDERA (OR OUR SUPPLIERS) BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY LOST PROFITS, LOST DATA, COSTS OF PROCUREMENT OF SUBSTITUTE PRODUCTS, OR ANY INDIRECT, CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES ARISING FROM OR RELATING TO THESE TERMS OR YOUR USE OF, OR INABILITY TO USE, THE SITES OR SERVICE, EVEN IF FUNDERA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ACCESS TO, AND USE OF, THE SITES OR SERVICE IS AT YOUR OWN DISCRETION AND RISK, AND YOU WILL BE SOLELY RESPONSIBLE FOR ANY DAMAGE TO YOUR DEVICE OR COMPUTER SYSTEM, OR LOSS OF DATA RESULTING THEREFROM. TO THE MAXIMUM EXTENT PERMITTED BY LAW, NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, OUR LIABILITY TO YOU FOR ANY DAMAGES ARISING FROM OR RELATED TO THE SERVICE OR THESE TERMS OF SERVICE (FOR ANY CAUSE WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, DAMAGES ARISING FROM YOUR FAILURE TO PROVIDE FUNDERA WITH ACCURATE INFORMATION OR TO CORRECT INACCURATE VERIFIED DATA, OR A THIRD PARTY’S FAILURE TO CORRECTLY VERIFY SUCH INFORMATION, AND REGARDLESS OF THE FORM OF THE ACTION), WILL AT ALL TIMES BE LIMITED TO A MAXIMUM OF ONE HUNDRED US DOLLARS (U.S. $100). THE EXISTENCE OF MORE THAN ONE CLAIM WILL NOT ENLARGE THIS LIMIT. YOU AGREE THAT OUR SUPPLIERS WILL HAVE NO LIABILITY OF ANY KIND ARISING FROM OR RELATING TO THESE TERMS OF SERVICE. SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY TO YOU. 10.2 No Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THESE TERMS OF SERVICE, THE SITES AND THE SERVICE PROVIDED HEREUNDER BY FUNDERA IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS, AND FUNDERA (AND OUR SUPPLIERS) EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES AND CONDITIONS OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, QUIET ENJOYMENT, ACCURACY OR NON-INFRINGEMENT. WE (AND OUR SUPPLIERS) MAKE NO WARRANTY THAT THE SITES AND THE SERVICE WILL MEET YOUR REQUIREMENTS, WILL BE AVAILABLE ON AN UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE BASIS, OR WILL BE ACCURATE, RELIABLE, AND/OR FREE OF VIRUSES OR OTHER HARMFUL CODE, COMPLETE, LEGAL, OR SAFE. IF APPLICABLE LAW REQUIRES ANY WARRANTIES WITH RESPECT TO THE SITE AND THE SERVICE, ALL SUCH WARRANTIES ARE LIMITED IN DURATION TO NINETY (90) DAYS FROM THE DATE OF FIRST USE. NO ADVICE OR INFORMATION PROVIDED BY FUNDERA SHALL CONSTITUTE ANY WARRANTY WITH RESPECT TO YOUR USE OF THE SERVICE. FUNDERA DOES NOT GUARANTEE OR ASSUME ANY RESPONSIBILITY FOR ANY SERVICE ADVERTISED OR OFFERED BY ANY THIRD-PARTY SERVICE RELATING TO EITHER FUNDERA OR ANY FUNDING PROVIDER. FUNDERA MAKES NO GUARANTEE AS TO THE NUMBER OF FUNDING PROVIDERS WITH WHOM YOU MAY BE MATCHED USING THE SERVICE, NOR DOES FUNDERA GUARANTEE THAT YOU WILL BE ABLE TO OBTAIN BUSINESS FUNDING IN ANY AMOUNT USING THE SERVICE, INCLUDING FROM ANY FUNDING PROVIDER FOR WHOM YOUR VERIFIED INFORMATION PROVISIONALLY PREQUALIFIES YOU FOR SUCH FUNDING. YOU UNDERSTAND AND AGREE THAT FUNDERA IS NEITHER A FUNDING PROVIDER NOR A FINANCIAL ADVISOR, AND NOTHING ON THE SITES IS INTENDED TO BE A SUBSTITUTE FOR PROFESSIONAL FINANCIAL ADVICE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU. SOME JURISDICTIONS DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATION MAY NOT APPLY TO YOU. 10.3 Not a financial planner, investment adviser or tax advisor. NEITHER FUNDERA NOR THE SERVICES ARE INTENDED TO PROVIDE LEGAL, TAX, INVESTMENT OR FINANCIAL ADVICE. FUNDERA IS NOT A FINANCIAL OR TAX PLANNER, AND DOES NOT OFFER LEGAL ADVICE TO ANY USER OF THE SERVICE. ALTHOUGH THE SERVICE MAY PROVIDE DATA, INFORMATION, OR CONTENT RELATING TO INFORMATIONAL SERVICES FOR U.S. BASED SMALL BUSINESS OWNERS INCLUDING INFORMATION AND REFERRALS FOR CERTAIN FINANCIAL SERVICES, YOU SHOULD NOT CONSTRUE ANY SUCH CONTENT AS TAX, LEGAL, FINANCIAL, OR INVESTMENT ADVICE.

  • $5K-$5M Loan Amount
  • 550 Min Credit
  • 24 Hours Funding Time
  • 7-30% APR
Quick Funding
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Key Facts

  • Eligibility: Businesses with less than 500 employees
  • Max loan amount: $10 million
  • Interest rate: 0.5%
  • Loan forgiveness for: payroll, mortgage interest, rent, utilities

Pros

pros iconFlexible on credit score. Getting approved is based more on strong balances and revenue.

pros iconVariety of loan types available

pros iconSoft credit check for the initial application

pros iconSave time with offers from multiple lenders

Cons

cons iconApplication process is a bit long for a marketplace because it requires 3 bank statements

cons iconSince Lendio is not a direct lender, the terms only become clear after applying for a loan

  • $1K-$5M Loan Amount
  • 500 Min Credit
View Details arrow

Key Facts

  • Credit score: depends on lender
  • Age of business: min. 12 months
  • US citizenship: required
  • Repayment terms: depends on lender
  • Term length: varies

Pros

pros iconMultiple business financing options available, ranging from small business loans to commercial real estate loans to lines of credit

pros iconStreamlined, intuitive application process with lender comparison option

pros iconTime to funding could be within 24 hours

pros iconTop-notch customer service team of finance professionals

Cons

cons iconAs a marketplace, specific terms, rates, and fees are not indicated until you apply with a partner lender

By indicating your agreement to these terms (for instance, by clicking the button), you, in your individual capacity, represent:

  • That you are authorized on behalf of the business listed in the application (the “Applicant”) to make and submit this application, to submit any accompanying documents, and to provide the consent and authorizations set out below.
  • That, should this application be approved, you are authorized to sign business financing documentation on behalf of the Applicant. Please be advised that some business financing products may require a personal guaranty.
  • That all information provided to Lendzi and/or its trusted partners is accurate and complete and that you will immediately notify Lendzi of any change in such information.
  • That Lendzi and its trusted partners may rely on the accurateness of the information provided.
  • That Lendzi may share all information and documents, excluding consumer credit reports, with its trusted partners to fulfill Applicant’s requests.
  • That Lendzi and its trusted partners may share information they have about you and Applicant at any time for administrative, marketing and servicing purposes as permitted by law and that your personal information may be shared with the Applicant as part of the underwriting process.
  • That you and the Applicant waive and release any claims against any information provided relating to the release of information.
  • That you agree to and accept all terms of the Lendzi Credit Gathering Authorization found here.

BY USING DH & RK Investments LCC dba Lendzi’S WEBSITE AND/OR REQUESTING THAT Lendzi CONTACT YOU FOR MARKETING PURPOSES, YOU AGREE TO ARBITRATE ALL CLAIMS BETWEEN YOU AND Lendzi (AND ANY ENTITY CALLING ON BEHALF OF Lendzi) ON AN INDIVIDUAL BASIS ONLY AND NOT AS A PART OF ANY CLASS. A “CLAIM” IS ANY CASE, CONTROVERSY, DISPUTE, TORT, DISAGREEMENT, LAWSUIT, LEGAL ACTION, OR CLAIM NOW OR HEREAFTER PENDING BETWEEN YOU AND Lendzi, INCLUDING BUT NOT LIMITED TO ANY ALLEGED STATE OR FEDERAL STATUTORY VIOLATION, OR ANY DISPUTE OVER THE INTERPRETATION OF THE TERMS OF APPLICATION OR THE ARBITRABILITY OF ANY CLAIM PURSUANT TO THE TERMS OF APPLICATION. THIS AGREEMENT TO ARBITRATE GOVERNS ALL PAST, CURRENT AND PROSPECTIVE INTERACTIONS WITH Lendzi. YOU AGREE THAT YOU ARE WAIVING ALL RIGHTS TO: (A) A TRIAL BY JURY; (B) PARTICIPATE IN A CLASS ACTION LAWSUIT OR CLASS ACTION ARBITRATION; AND (C) BRING AN ACTION AGAINST Lendzi IN A COURT OF LAW. YOU MAY INDIVIDUALLY ARBITRATE ANY CLAIM AGAINST Lendzi IN ANY JURISDICTION IN THE UNITED STATES. THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION THEN IN FORCE SHALL GOVERN THE ARBITRATION (provided, however, that the terms of the Lendzi Terms of Application and Terms of Use shall control over any inconsistency between the Rules of the American Arbitration Association and the Terms of Application). The arbitrator shall have authority to interpret the Terms of Application, including but not limited to the authority to decide whether any claim is arbitrable under the Terms of Application and to decide issues related to the scope of arbitration, the rules of arbitration, the arbitrator’s jurisdiction, and the enforceability of the Terms of Application. You agree that the Terms Application involves commerce under 9 U.S.C. Sections 1 et seq. and that this Arbitration Clause is governed by federal law, including the Federal Arbitration Act. The remainder of the Terms of Application is governed by the laws of the state of Utah, as provided in the Terms of Use.

YOU UNDERSTAND THAT THIS IS AN APPLICATION FOR A COMMERCIAL LOAN AND THAT ANY LOAN FUNDS OFFERED TO APPLICANT MAY NOT BE USED FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES.

IMPORTANT INFORMATION ABOUT OPENING A NEW ACCOUNT

Federal law requires all financial institutions to obtain, verify and record information that identifies each person and entity that opens an account or establishes a relationship with such institution, including name, address, date of birth, social security or tax identification number and other information that will allow the financial institution to verify your and/or the entity’s identity. You may also be asked to provide identifying documents.

  • $1K-$1M Loan Amount
  • 500 Min Credit
  • 24 Hours Funding Time
Easy Application
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Pros

pros iconFunding available within 24 hours.

pros iconVariety of financing options available.

pros iconSupports businesses with potential and robust revenues.

Cons

cons iconMay be an expensive option due to fees.

cons iconEvery state may not have the same financing options.

cons iconNo live chat option on their website.

Biz2Credit Disclosure: By accessing or applying for Business Finance Services from Biz2Credit relating to your potential business funding or other business financing products, you expressly accept and agree to both our Terms of Service and the Business Finance Services Terms & Conditions. The rates and terms and conditions here in are not a commitment or guaranty by Biz2Credit Inc. or any of its affiliates to provide financing, and are subject to change at any time. Not valid in all states. All products and services are subject to eligibility and other conditions and restrictions. Biz2Credit Inc. is not a lender. All terms and conditions and credit decisions are at the sole discretion of the lender. Offered for commercial uses to businesses only. Other terms, conditions, fees and restrictions may apply.

  • $25K-$6M Loan Amount
  • 575 Min Credit
  • 72 Hours Funding Time
Editor's Choice
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Key Facts

  • Multiple types of funding, nationwide
  • Get help from a loan representative
  • Highly rated customer support

Pros

pros iconEasy way to compare business loans from over 35 lenders

pros iconPartners with large, established lenders such as Bluevine, OnDeck, and Funding Circle

pros iconLoan decisions are made quickly after an easy application process

Cons

cons iconNo transparency of loan terms readily available

cons iconLoan funding can take up to one week, which is longer than competitors

cons iconCollateral is required from some of BusinessLoans.com’s lending partners

BusinessLoans.com allows users to obtain information about certain loans, financial products, and services offered through third-party service providers and advertisers. BusinessLoans.com is not an agent or advisor to you or any other third party.

You acknowledge and agree that our website is solely an intermediary to connect users with service providers to obtain information about certain financial products and services. You acknowledge and agree that we are not a financial institution, credit card issuer, or other financial service provider and that any information or advice made available through the Services is for informational purposes only.

We do not, and will not, create any coverage or credit decision with any service provider that may be referred to you through our Services. We do not (i) validate the licensing, certification, or other qualifications of Service Providers that you may encounter through our Services, (ii) guarantee the terms or rates offered by any third party through or on our Services, or (iii) issue credit cards or any other financial products.

We are not responsible for the conduct or policies of the service providers. The terms and rates provided by any service provider will be subject to the applicable terms and conditions of the products and services offered by the service providers.

  • $5K-$3M Loan Amount
  • 640 Min Credit
  • 24 Hours Funding Time
Quick Funding
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Key Facts

  • Credit score: 625
  • Age of business: 12+ months
  • Monthly revenue: $8,000
  • Personal guarantee: Required
  • US citizenship: required, or permitted residency
  • Term lengths: Up to 24 months

Pros

pros iconTerm loans from $5,000 to $250,000; lines of credit from $6,000 to $100,000

pros iconSame-day funding

pros iconNo hard credit pulls

Cons

cons iconNot all industries are eligible

cons iconDoes not lend in North Dakota

cons iconInterest rates can be high compared with traditional lenders

Same Day Funding is only available in certain states for term loans up to $100K. The eligibility window is Monday-Friday before 10:30am EST. If checkout completes before 10:30am EST, funds will be available by 5pm local time the same day. If checkout occurs after 10:30am EST or on a weekend or bank holiday, it will not qualify for Same Day Funding, and funds will be deposited within 2-3 business days. Eligibility rules around creditworthiness and length of term loan apply.
Eligibility for the lowest rates is limited, available only to businesses with the strongest creditworthiness and cash flows, and typically companies that have shown an excellent payment history on prior loan products with OnDeck. The average rate for term loans is 62.1% APR, and the average rate for lines of credit is 48.9% APR. Averages are based on loans originated in the half-year ending March 31, 2022.

  • $5K-$250K Loan Amount
  • 625 Min Credit
  • 24 Hours Funding Time
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Key Facts

  • Credit Score: 650
  • Age of business: 1 Year
  • Monthly revenue: $25,000
  • Origination fee: 0-2%

Pros

pros iconQuick approval time

pros iconFast time to funding

pros iconGood track record

pros iconFlexible repayment options

Cons

cons iconNo transparency on rates

cons iconAdditional fees sometimes necessary

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

  • $10K-$500K Loan Amount
  • 650 Min Credit
  • 24 Hours Funding Time
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Pros

pros iconUltra-fast funding available

pros iconA low minimum credit score of 625

pros iconAvailable to businesses who have been active for 6 months

pros iconOnly pay for the portion of the line of credit that you use

Cons

cons iconThe rate of borrowing is expensive

cons iconOnly two repayment terms (6 and 12 months)

cons iconThe monthly revenue requirement of $10,000 will price out many businesses

Bluevine is a financial technology company, not a bank. Banking Services provided by Coastal Community Bank, Member FDIC. Bluevine accounts are FDIC insured up to $3 million per depositor through Coastal Community Bank, Member FDIC. The Bluevine Business Debit Mastercard® is issued by Coastal Community Bank, Member FDIC pursuant to a license from Mastercard International Incorporated and may be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Application is subject to approval. No monthly or maintenance fees. Card Replacement Fees and Wire Transfer Fees may apply.

Certain Bill Pay funds, including Bill Pay with Credit Card, are held by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). Banking Services for payments made via ACH or wire from the Bluevine Business Checking Account are provided by Coastal Community Bank, Member FDIC.

Bluevine’s Flex Line of Credit is issued by Celtic Bank, a Utah-chartered Industrial Bank, Member FDIC. Applications are subject to credit approval. Rates, credit lines, and terms may vary based on your creditworthiness and are subject to change. Additional fees apply.

PPP loans are made by one or more approved U.S. Small Business Administration (SBA) lenders. Loan agreements will identify the issuing lender to small businesses at signing. Qualified applications will be submitted to the SBA as soon as possible. Bluevine does not guarantee that applications will be processed and submitted before PPP funds are no longer available. Approval and loan forgiveness are subject to your availability to meet government-set eligibility requirements.

Certain financing may be made or arranged pursuant to California Financing Law-License No. 6054789.

  • $6K-$250K Loan Amount
  • 625 Min Credit
  • 24 Hours Funding Time
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Key Facts

  • Credit score: 550
  • Age of business: 18+ months
  • US citizenship: Required for all owners
  • Repayment terms: Varies
  • Term length: 3-60 months

Pros

pros iconFast time to funding

pros iconLow barrier to entry

pros iconQuality customer support team

pros iconGood track record

Cons

cons iconNot the most competitive rates

*Small Business Financial Solutions, LLC offers term loans and lines of credit (pursuant to its California Lenders License No. 603-I855) and factoring in California. Small Business Financial Solutions, LLC and Rapid Financial Services, LLC offer term loans, lines of credit and factoring outside of California. Commercial Servicing Company, LLC arranges term loans and lines of credit in California (pursuant to its California Finance Lenders License No. 603-J299) and arranges term loans, SBA loans, lines of credit, factoring, asset-based loans, commercial real estate loans and business credit cards outside of California.

  • $5K-$1M Loan Amount
  • 550 Min Credit
  • 24 Hours Funding Time
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Pros

pros iconReceive a business line of credit within 24 hours

pros iconFewer hurdles to go through than with traditional loan financing

pros iconAccepts businesses with only six months of trading history

pros iconNo fees or prepayment penalties

Cons

cons iconHigh APRs compared to traditional business loan funding

cons iconOnly short-term loans are available

cons iconNot practical for equipment purchasing, only working capital management

Fundbox makes capital available to businesses through business loans and lines of credit made by First Electronic Bank, a Utah chartered Industrial Bank, member FDIC, and invoice-clearing advances, business loans, and lines of credit made directly by Fundbox.

  • $1K-$150K Loan Amount
  • 600 Min Credit
  • 24 Hours Funding Time
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Key Facts

  • Credit Score: 570
  • Age of business: 6 months
  • Monthly revenue: $20,000
  • Origination fee: 3%

Pros

pros iconSuccessful applications receive funding in less than 72 hours

pros iconDiscounts available for early repayment of loans

pros iconLow credit threshold for loan eligibility

pros iconGood customer service and A+ BBB rating

Cons

cons iconUses factor rating instead of APR, which makes comparing with other loan offers difficult

cons iconOnly short-term loans are available

Fora Financial provides business capital, including business loans and Revenue Based Financing, directly and through a network of unaffiliated third-party funding providers. Business loans are offered by Fora Financial Business Loans LLC or, in California, by Fora Financial West LLC, a licensed California Finance Lender, License No. 603J080. Fora Financial Advance LLC offers Revenue Based Financing. Business capital is also made available through US Business Funding, a sister company of Fora Financial. The products and amounts offered vary by state.

  • $5K-$1.5M Loan Amount
  • 570 Min Credit
  • 72 Hours Funding Time

Top Commercial Real Estate Loan Providers

Fundera Logo
Fundera

Get funded faster than at your bank

550

Min Credit Score

Min 7%

APR. Fixed Rate

7-30%

APR. Variable Rate

$5K-$5M

Loan Amount

1-10 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

24 Hours

Funding Time

$130K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Multiple financing options designed to help businesses grow and succeed
  • con-icon Convenient shop and comparison tool
  • con-icon Free service
  • con-icon Matched with experienced Funding Advisor who helps every step of the way
  • con-icon Loan terms and conditions not disclosed until after completing an application
  • con-icon Once deciding upon a product, you’ll work with the lender instead of Fundera
  • con-icon Must have been in business for at least 1 to 4 years to qualify for funding
  • con-icon Potentially high interest rates and eligibility requirements

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Invoice Financing
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
  • Startup Loans

640

Min Credit Score

Min 9%

APR. Fixed Rate

$5K-$3M

Loan Amount

1-20 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

24 Hours

Funding Time

$240K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Easy way to compare business loans from over 35 lenders
  • con-icon Partners with large, established lenders such as Bluevine, OnDeck, and Funding Circle
  • con-icon Loan decisions are made quickly after an easy application process
  • con-icon No transparency of loan terms readily available
  • con-icon Loan funding can take up to one week, which is longer than competitors
  • con-icon Collateral is required from some of BusinessLoans.com’s lending partners

Business Loan Types

drop-down-btn
  • Business Line of Credit
  • Business Term Loan
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
Lendio Logo
Lendio

Buying, Building, or Renovating Your Business

500

Min Credit Score

Min 6%

APR. Fixed Rate

$1K-$5M

Loan Amount

1-30

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

$96K

Annual Revenue

6+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Flexible on credit score. Getting approved is based more on strong balances and revenue.
  • con-icon Variety of loan types available
  • con-icon Soft credit check for the initial application
  • con-icon Save time with offers from multiple lenders
  • con-icon Application process is a bit long for a marketplace because it requires 3 bank statements
  • con-icon Since Lendio is not a direct lender, the terms only become clear after applying for a loan

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Business Term Loan
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Startup Loans

What is a Commercial Real Estate Loan?

Commercial real estate loans are designed to facilitate the purchase, refinancing, or development of commercial properties. These loans are primarily used by businesses, investors, and developers to acquire, renovate, or expand properties that generate income, such as office buildings, retail centers, apartment complexes, hotels, and industrial facilities.

Business Loans For Real Estate: Key Terms to Know

If you’re considering a commercial real estate loan, here are key terms to familiarize yourself with before taking one out:

  • Loan-to-value ratio (LTV): Typically, commercial real estate lenders will consider the LTV when determining how much to offer. This is the percentage you get when you divide the mortgage loan amount by the property’s current value. If a property is valued at $300,000, but the loan amount is $200,000, the LTV would be 67%. Most lenders offer commercial real estate loans with an LTV between 65% and 85%.
  • Down payment: Commercial lenders often require a down payment of around 20% to 30%. The higher the down payment, the better your approval odds for a loan.
  • Interest rate: Interest rates vary based on things like your credit score, down payment amount, and the lender. Oftentimes, it can range from 10% to 20%.
  • Loan term: The repayment period also varies by lender but tends to be anywhere from 10 to 25 years. Some loans have a shorter term but a longer amortization period. In this case, you’ll have to make a final, large balloon payment to pay off the remaining balance.
  • Credit score: You might need good credit — 670+ FICO — or better to qualify for a commercial real estate loan.
  • Debt-to-income (DTI) ratio: Some lenders won’t work with borrowers if their DTI ratio is too high. Try to get yours down before applying for financing.
  • Collateral: Typically, the collateral is the building or property itself. In some cases, a lender might request additional collateral before approving a loan. Failure to repay the loan could result in losing your collateral.

The best lender for you depends on several factors, including the type of loan, how much you need, and your qualifications. Since options can vary across lenders, it’s important to compare several offers before choosing one.

How Commercial Real Estate Loans Work

Commercial real estate (CRE) loans, also known as commercial mortgage loans, share similarities with typical mortgage loans. The primary distinction lies in their intended use, as these loans are specifically tailored for commercial purposes rather than residential ones.

You can use a commercial loan for many reasons, including:

  • Business expansion
  • Commercial property purchase (industry buildings, office space, restaurants, hotels or multi-unit apartment complexes)
  • Renovation
  • Refinancing a current real estate loan

Business real estate loans are typically structured as term loans, necessitating regular payments over a specified period that cover both principal and interest. These loans are secured by a property lien, and if payments are missed, the lender can seize the property. Some loans may require a larger "balloon payment" at the end of the term. These loans can be obtained from banks, credit unions, online lenders, or the U.S. Small Business Administration (SBA).

Best Real Estate Loan Lenders

 

Fundera Logo
Fundera

Get funded faster than at your bank

550

Min Credit Score

Min 7%

APR. Fixed Rate

7-30%

APR. Variable Rate

$5K-$5M

Loan Amount

1-10 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

24 Hours

Funding Time

$130K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Multiple financing options designed to help businesses grow and succeed
  • con-icon Convenient shop and comparison tool
  • con-icon Free service
  • con-icon Matched with experienced Funding Advisor who helps every step of the way
  • con-icon Loan terms and conditions not disclosed until after completing an application
  • con-icon Once deciding upon a product, you’ll work with the lender instead of Fundera
  • con-icon Must have been in business for at least 1 to 4 years to qualify for funding
  • con-icon Potentially high interest rates and eligibility requirements

Business Loan Types

drop-down-btn
  • SBA Loans
  • Business Line of Credit
  • Invoice Financing
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
  • Startup Loans

640

Min Credit Score

Min 9%

APR. Fixed Rate

$5K-$3M

Loan Amount

1-20 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

24 Hours

Funding Time

$240K

Annual Revenue

12+ Months

Time in Business

Pros & Cons

drop-down-btn
  • con-icon Easy way to compare business loans from over 35 lenders
  • con-icon Partners with large, established lenders such as Bluevine, OnDeck, and Funding Circle
  • con-icon Loan decisions are made quickly after an easy application process
  • con-icon No transparency of loan terms readily available
  • con-icon Loan funding can take up to one week, which is longer than competitors
  • con-icon Collateral is required from some of BusinessLoans.com’s lending partners

Business Loan Types

drop-down-btn
  • Business Line of Credit
  • Business Term Loan
  • Term loans
  • Short-Term Business Loan
  • Merchant Cash Advances
Lendio Logo
Lendio

Buying, Building, or Renovating Your Business

500

Min Credit Score

Min 6%

APR. Fixed Rate

$1K-$5M

Loan Amount

1-30

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

$96K

Annual Revenue

6+ Months

Time in Business

Pros & Cons

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  • con-icon Flexible on credit score. Getting approved is based more on strong balances and revenue.
  • con-icon Variety of loan types available
  • con-icon Soft credit check for the initial application
  • con-icon Save time with offers from multiple lenders
  • con-icon Application process is a bit long for a marketplace because it requires 3 bank statements
  • con-icon Since Lendio is not a direct lender, the terms only become clear after applying for a loan

Business Loan Types

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  • SBA Loans
  • Business Line of Credit
  • Business Term Loan
  • Equipment Financing
  • Term loans
  • Short-Term Business Loan
  • Startup Loans

Commercial Real Estate Loan Types

There are several types of business loans for real estate, including:

  • Purchase loan: This option is essentially a mortgage on a commercial property. It will have an amortization schedule, repayment terms, interest rates, and so forth. It will also use the property or building as collateral.
  • SBA loan for commercial real estate: The SBA has several different types of loans, including the 7(a) loan. These loans can be used for things like working capital or real estate. One option, the 504 loan, can be used to finance large fixed assets, as well as the construction of new facilities or buildings.
  • Construction loan: If you need financing to update or build a commercial building, a construction loan could help. Most lenders will provide funding at certain points throughout the construction process. During this time, you’ll be responsible for making interest-only payments on the amount borrowed. Once construction ends, you’ll either need to pay off the rest of the loan or refinance it into a CRE loan.
  • Bridge loan: This financing option is a short-term solution until you can get better financing. Bridge loans usually have a repayment period of about six months and come with a higher interest rate. Some lenders require collateral.
  • Line of credit: If you already own commercial property, you could use a line of credit to borrow against your equity.
  • Hard money loan: This is another short-term funding solution offered through private corporations. It’s typically easier to get but can be expensive.

How to Get a Commercial Real Estate Loan

Getting business loans for real estate tends to be straightforward:

  1. Determine what you need: Calculate how much you need and why. And make a plan for how you’ll repay it.
  2. Check the eligibility requirements: You’ll typically need a certain credit score (personal and business) and business revenue requirements. You may also need to provide financial escorts, bank statements, a business plan, and personal finance information. Many lenders will also check your debt-to-income ratio, assets, time in business, licenses, and net operating income.
  3. Provide property information: Make sure you know what type of property you want to get (or build) and why. Include the property price and address, too. If you plan to live on-site, you may need additional information.
  4. Compare lenders: Shop around for a lender and financing option that suits you best. This is a good time to compare eligibility criteria, rates, terms, lender fees, and more.
  5. Complete the application: You can fill out the loan application either online or in person. Applying for a loan will affect your credit score. The lender may also request additional information during the underwriting process.
  6. Sign the loan agreement: If you are approved, review any paperwork and sign on the dotted line. You’ll then receive the funds. This can take a few business days or weeks.

Commercial Real Estate Loans Pros and Cons

Whether you go with an SBA loan for commercial real estate or another commercial real estate loan, there are several pros and cons to consider.

Pros Cons
Many loan types are available to help you scale your business May come with higher interest rates or other fees
Some options are flexible or have longer repayment terms Having poor credit or limited credit history can make it hard to qualify for financing
Funds can be used to purchase or renovate commercial property Approval and time to funding can take several weeks
Can be used to improve your business’ credit score Stricter eligibility requirements than other financing options

Average Commercial Real Estate Loan Rates

The rates and terms can vary depending on the lender and loan type, as well as your personal and business qualifications. Here are some of the top lenders and what they currently offer (rates subject to change):

Lender

Min. APR (Fixed)

Loan Term

Loan Amount

Minimum Time in Business

Revenue Requirements

Recommended Minimum Credit Score

Biz2credit

10%

12 to 36 months

$250,000 to $6M

18 months

$250,000+ annual revenue

660

Lendio

4.5%

20 to 25 years

$250,000 to $5M

6 months

$8,000+ per month

600

Ondeck

29.9%

24 months (daily or weekly payments)

$5,000 to $250,000

12 months

$100,000+ annual revenue

625

Fundera

7%

12 to 60 months

Up to $600,000

36 months

$300,000+ annual revenue

680

Rapid Finance

Varies

5 to 20 years

$75,000 to $2M

24 months

Undisclosed

550

Conclusion

Commercial real estate loans are indispensable means for businesses, investors, and developers looking to thrive in the dynamic world of real estate. Throughout this article, we've explored the fundamental aspects of these loans, from their diverse purposes and property types to their unique terms and qualification criteria. Commercial real estate loans, with their flexibility and potential for growth, offer a path to property ownership, expansion, and income generation.