What Is a Commercial Real Estate Loan?

A commercial real estate loan is another term for a commercial mortgage.

And that is…?

Pushy, pushy! Basically, a commercial mortgage is funding based on the value of the real estate offered as collateral, as well as personal or business credit. This means the size and rates of the loan will be tied very closely to the type of real estate you own.

Hey, my company has real estate! What can I do with the loan?

A commercial real estate loan is typically used for one of three things:

  1. Utilizing Your Equity – Instead of taking much needed cash out of your company, you can use the equity in your buildings for things like upgrades, expansions, additional working capital, and more.
  2. Refinancing – The simplest way to increase your cash flow is to decrease your overhead. If your building is more than three years old, chances are you could reduce your monthly mortgage payment through a refinance.
  3. Purchasing a Property – You can purchase a property with as little as 10% down. As a business owner, you’re eligible for the highest amount of leverage available, which is perfect for those times when you need to expand but don’t have the funds on hand.

Can I get a commercial mortgage through Lendio?

You betcha. We are partnered with more than 75 lenders to give you as many options as possible. Just fill out our magical online application to see which loan products you qualify for. You could be finished and speaking with your personal funding manager in as little as fifteen minutes.

And don’t worry. We’ll still be here for you when you get back.