Unsecured Commercial Real Estate Loans
Commercial real estate loans to help small businesses own the properties they operate out of. Get up to $850,000 to purchase the commercial premises of your dreams.
Poor Credit Accepted
No Collateral Required
Minimal Paperwork
Commercial Real Estate Funding For Small Businesses Across The USA
At Business Finance Source, we understand the importance of securing financing for the purchase of a commercial property to operate your business out of. That’s why we offer financing of up to 100% of the commercial property loan amount, with loan amounts available up to $850,000. Let us help you own the property that your business operates out of. Apply now to get started.
How To Get A Real Estate Loan From Business Finance Source™
Loan Application Process
1
Apply Online
Our platform evaluates your loan application and gives you an initial decision in 60 seconds.
2
Upload Bank Statements
Once you’re pre-approved, upload the last 3 months of your bank statements to get final approval.
3
Get Funded
After final loan approval, get the funds deposited into your bank account in as little as 24 hours.
Eligibility Requirements
At Business Source, you must meet the following minimum requirements to qualify for commercial real estate financing:
1. Be in business for 6 months or more
2. Provide 3 Months Bank Statements
3. Have an active Business Bank Account
4. Business must make +$7,500 per month
Who can apply?
You can apply for finance with Business Finance Source if you’re a US citizen or resident over the age of 18 years of age.
Commercial Real Estate Financing Explained
What Is It?
Business owners who want to buy or renovate a property for their business may not qualify for a traditional mortgage.
An unsecured commercial real estate loan is a financing option that helps these business owners buy or renovate a property for their business. The lender provides the funds to purchase the property, and the property itself serves as collateral for the loan. No other collateral is required.
This type of loan can be a helpful option for business owners who want to invest in a property to support the growth of their business but don’t want to put up personal assets as collateral.
How Does It Work?
- Identify the commercial property you want to purchase.
- Submit an application for a commercial real estate loan to the lender, including details about your business and financial information.
- The lender will evaluate the property and your business’s financial health and history to determine the value and assess the risk of lending to your business.
- If the lender is willing to lend to your business, they will offer you loan terms, including the interest rate, repayment schedule, and any fees based on the risk of lending to your business.
- If the lender is willing to lend to your business, they will offer you loan terms, including the interest rate, repayment schedule, and any fees based on the risk of lending to your business.
Interest Rates
In the United States, commercial mortgage rates offered by banks range from 4% and higher. However, online lenders that provide commercial real estate loans may charge interest rates that range from 2% to 18%.
Repayment Terms
Repayment Period: Commercial property loans are shorter in duration than residential loans, with repayment terms ranging from 3 to 10 years.
Repayment Frequency: Commercial property loans have a repayment schedule that occurs monthly.
Repayment Amount: When it comes to repayment for commercial property loans, most lenders require the payment of the loan principal, as well as all accrued interest. Some lenders may also require a lump sum payment at the end of the loan term, known as a balloon payment. It is important to be aware of whether or not the loan includes a balloon payment at the end of the term.
Commercial Real Estate Loan Calculator
This calculator helps you estimate the cost of purchasing a commercial property.
Get access to all of our business loan calculators.
What Can It Be Used For?
Commercial real estate loans allow businesses to purchase a wide range of commercial properties, including office buildings, retail spaces, industrial warehouses, hotels, gas stations, car washes, restaurants, medical offices, agricultural land, and many other types of commercial property.
Benefits And Drawbacks
Benefits
- Allows businesses to purchase their own business premises instead of renting.
- Allows businesses to pay off the property loan over a medium term, which helps keep repayments manageable and doesn’t negatively impact their working capital.
- Interest payments on commercial real estate loans are tax-deductible.
Drawbacks
- Most lenders require a 10-20% down payment to secure commercial real estate financing.
- Interest rates may be higher than traditional bank business real estate mortgages.
- Qualification may be difficult for businesses with poor credit, limited financial history, or insufficient cash flow.
FAQs
It is easier to get a commercial real estate loan from a private lender compared to a commercial mortgage from a bank. Private lenders often have less stringent requirements and are more flexible in their underwriting criteria compared to banks. However, it is important to note that private lenders may charge higher interest rates to compensate for the higher risk they are taking on.
A commercial mortgage is financing from a bank to help you purchase a commercial property. A commercial real estate loan is financing from alternative lenders to purchase a business property. The main difference is that commercial mortgages typically have strict requirements, including a high minimum credit score, a large down payment, and a strong credit history, in order to be approved. Commercial real estate loans place more emphasis on the financial health of the business in their approval criteria.
It is uncommon for lending institutions in the USA to offer 100% commercial real estate loans. Most institutions typically offer loans for up to 75% of the property value. However, it may be possible to use other collateral, such as a residential property, to help secure a higher percentage loan. Some lenders may be more willing to offer a loan that approaches 100% of the property value if they feel that the collateral offered reduces the overall risk of the loan.