What is a Commercial Real Estate Business Loan?

A commercial business loan is a type of loan that’s intended for business owners who want to expand their company beyond the typical small business loans. For example, if your real estate business is taking off quicker than you anticipated and you need to accommodate your growing needs, you may need to use a commercial business loan to purchase a larger space or more investment properties. 

A commercial business loan is essentially a business purpose loan that provides greater amounts of funding for companies with bigger financing needs. With a commercial business loan, you can get funding with one lump sum so that you can address your needs immediately. You can also refinance at a lower rate or an extended term. Commercial business loans must be secured by 1-4 unit real estate investment properties.

What Can a Commercial Real Estate Business Loan Be Used for?

Business purpose loans can be used for a variety of purposes, such as:

  • To open another location
  • To hire new employees
  • To purchase new equipment
  • To invest in new inventory

Commercial real estate business loans are ideal for business owners who are looking to make big changes and need a large sum of money to do so.

Benefits of a Commercial Real Estate Business Loan?

If you’re thinking about opening a new location for your business or expanding your product offering, a commercial real estate business loan might be the best opportunity for you to achieve that. 

There are many benefits of using a commercial business loan, including:

  • Bigger loan size: Most business purpose commercial real estate loans are much higher amounts than other loan options.
  • Quick approval time: Getting approved for a commercial business loan is often much quicker than getting approved for a traditional loan. Griffin Funding strives to complete the loan process within 30 days.
  • Cash flow boost: With a commercial business loan secured by real estate, you’ll get a cash flow influx you need so you can afford your business expenses and start expanding your business.
  • Maintain business ownership: You will remain the owner of your business without the interference of new investors or board members making decisions in exchange for capital.
  • More flexibility: You’ll get more flexible financing solutions so you can create a customized commercial loan that works for your financial needs.
  • Closing in the name of your LLC or business entity and personally guaranteeing the loan.

If you need more guidance as to whether a business purpose loan is the right solution for you, speak with one of our knowledgeable loan specialists today. We also have an chat option on our website where you can get assistance.

How Do You Get a Commercial Loan for a New Business?

Loan qualifications differ depending on the type that you’re applying for. To qualify for a business purpose loan, you’ll typically need to meet minimum criteria for your business credit score, annual revenue, and years in operation. Different lenders set their own minimum qualifications and requirements, so you should check with any lender that you are considering. 

Griffin Funding strives to offer flexible underwriting terms to make business purpose loans more accessible to a greater number of borrowers. Our team also follows a streamlined 10-step lending process and uses advanced technology to make the loan application and approval process as efficient as possible.

How Much Do You Need Down for a Commercial Real Estate Loan?

The amount of money you need to put down for a commercial real estate loan will vary for each borrower and their specific financial situation. There are various factors that will affect how much you need to put down for a commercial loan, such as the amount you are planning to borrow, your business’s financial standing, and your lender’s specific requirements.

However, it’s important to understand that typically, the more money you put down, the less you’ll have to pay off over the course of the loan and the less interest you’ll accrue.

Is It Hard to Get a Commercial Loan?

If you choose Griffin Funding as your mortgage lender, we will do everything we can to make it as easy as possible to get the real estate backed small business commercial loan you need. We strive to make commercial business loans accessible to as many borrowers as possible by offering flexible requirements.

We can typically complete the lending process within 30 days, so you can start making moves to grow your business as quickly as possible, so you can move forward with your expansion plans in a timely manner.

In addition to commercial business loans, we also offer various other types of lending programs, such as commercial DSCR loans, investment property loans, and bank statement loans. So whether you’re interested in buying a new home, investing in a rental property, or purchasing commercial real estate, we’re here to help you with all your mortgaging needs. 

Learn more about Griffin Funding and why you should consider us as your commercial business loan provider.

Where are Business Purpose Loans Available?

Griffin Funding provides business purpose mortgage loans across the U.S., including but not limited to:

  • Arizona
  • California
  • Colorado
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Maryland
  • Michigan
  • Montana
  • Tennessee
  • Texas
  • Virginia
  • Washington

Apply for a Business Purpose Loan Today

If your business is rapidly growing and you need to make changes to accommodate that, a business purpose loan might be the right solution for you. To get started with the application process, you can contact us at (855) 394-8288 or (855) 651-2871. Otherwise, you can apply directly online to see if you qualify for the loan you need. 

At Griffin Funding, we are dedicated to white-glove, five-star customer service and lending excellence. You can rest assured that we are prepared to help you secure a business purpose loan that allows you to meet your goals.