Commercial real estate loans are a great way to finance the purchase or renovation of commercial property. There are a variety of commercial real estate loans available, so it’s important to understand the different types and how they work.
The Different Types of Commercial Real Estate Loans
The most common commercial real estate loan is the mortgage. A mortgage is a loan that uses the property as collateral. If you can’t repay the loan, the lender can seize the property. Mortgages are available from commercial banks, credit unions, and online lenders.
Another common commercial real estate loan is the line of credit. A line of credit is a loan that allows you to borrow up to a certain amount of money at any time. This type of loan is ideal for businesses that need to finance short-term projects, such as renovations or new leases. Lines of credit are available from commercial banks and credit unions.
If you’re looking for a large loan to finance a commercial property purchase or renovation, you may want to consider a commercial real estate loan from a lending institution such as a bank or credit union. These loans typically have lower interest rates and longer repayment terms than other types of commercial loans.
Qualifying And Alternative Lending
If you have good credit, you may be able to qualify for a conventional commercial real estate loan. A conventional loan is a loan that’s not backed by the government. These loans typically have lower interest rates than government-backed loans.
You may also be able to get a commercial real estate loan through the Small Business Administration (SBA). The SBA offers several programs that can help you finance the purchase or renovation of commercial property.
No matter what type of commercial real estate loan you’re considering, it’s important to shop around and compare offers from multiple lenders. Be sure to compare interest rates, fees, and repayment terms before choosing a loan. You can learn more about commercial real estate loans by speaking with a lending professional; the experts at Achieve Capital Advisors are just the ones to answer your questions and address your concerns. Drop us a line today.