As Little as 45 Days
As low as 4.25-6%
Building out your business location is a smart way to increase your assets. Every renovation, upgrade, or expansion adds value to your property, gives you the space you need to streamline operations, or attracts more customers. A commercial mortgage can help you do all this and more. Remember, there’s more at stake than square footage. Making a savvy financing move could help you build a firmer foundation for your small business—literally and fiscally.
A commercial mortgage, sometimes called business mortgage, is a loan designed to help your business building-related financial costs, such as securing a property or building for your business.
You can use a commercial mortgage to purchase a commercial property—whether it’s office space, a factory, retail, or restaurant space. If you can’t find an existing building that’s right for your needs, you can use your building loan to cover the construction costs of building a new space. Need to expand? A commercial mortgage covers that.
If you are looking for a loan for another purpose, there are many different types of small business loans that you can look at.
Yes, you can extend your payment terms and adjust your interest rate by refinancing with a commercial mortgage.
Yes! Would updating your building help you to attract more customers? A commercial mortgage can give you the financing to make it happen. Restaurants and retailers have demonstrated the ways an updated interior can drive customers, bringing the owners a sweet return on their investment.
In our professional opinion, probably not. That sounds like a personal purchase, and one small enough that you probably shouldn’t take out a loan for it. Unless it’s a fancy, super-important hat that your business needs. In that case, we recommend an equipment loan.
Most lenders will require your business to occupy 51% of the property to qualify for a commercial mortgage. Because a commercial mortgage is an asset-based loan, the loan amount and rate will largely be based on your credit and the value Fof the property you’re using as collateral.
The value of the property affects the mortgage decision. For that reason, a prime retail space in Los Angeles may be easier to finance than a rural storage unit a few hours outside Fargo, North Dakota. You’ll want to take this into consideration when you’re deciding where to buy or build.
If you’re planning on making upgrades to a property, your lender will want to know about them. For full-scale property renovations, your lender will also want to assess the after-repair value (commonly called ARV) of the property. Be sure you have a plan for how you’ll use the mortgage before you apply—that way, you’ll have answers to all the lender’s questions.
Lendio’s single 15-minute application allows you to compare options from our curated network of 75+ lenders. Commercial mortgages can be funded in as little as 45 days, so you might as well get the ball rolling… in a lot less time than the 29 hours your average bank application takes.
Commercial mortgage interest rates can be as low as 4.25%, making the loans an incredibly cost-effective form of capital.
When you apply through Lendio, you can compare commercial mortgage rates from our curated network of 75+ lenders, and your funding manager can help you weigh the benefits and costs of your financing options.
To get a ballpark idea of how much your commercial mortgage payments could be, check out our commercial real estate calculator. Plug in a few numbers and we’ll do the math for you.
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