Commercial Loans

A commercial loan is a loan made to a business (not an individual) to finance business-related expenses.

These loans are often used for:

  • Purchasing or refinancing commercial real estate
  • Buying equipment, inventory, or vehicles
  • Funding working capital or business expansion

Types of Commercial Loans

  • Commercial Real Estate Loans- Buying or refinancing office buildings, warehouses, retail spaces, apartments (5+ units)
  • SBA Loans- Government-backed loans for small businesses (e.g. SBA 7(a), SBA 504)
  • Term Loans- Fixed loan amounts for large one-time needs
  • Business Lines of Credit- Revolving credit for flexible cash flow management
  • Equipment Financing- Buying machinery, vehicles, or tools
  • Bridge Loans- Short-term financing while waiting for permanent funding or sale

Loan Features

  • Loan Term- 1 to 30 years
  • Loan Amount- $50,000 to $100M+
  • Interest Rate- 5%–12%+ (varies by risk, lender, and type)
  • Down Payment- Often 10%–30% (for real estate)
  • Collateral- Often required (property, equipment, etc.)
  • Credit/Financials Business credit score, tax returns, income statements, projections 

Who Uses Commercial Loans?

  • Small business owners
  • Real estate investors buying commercial properties
  • Developers and builders
  • Corporations needing capital to grow or operate