A commercial real estate loan can help you secure your next property for your business or tenancy. There are many different types of loans, and the best option may come down to your credit history or cash on hand.

The Types of Commercial Real Estate Loans are:

• Small Business Administration (SBA) Loan 

• Certified Development Company (CDC) Loan 

• Conventional Loan 

• Commercial Bridge Loan 

• Hard Money Loan 

• Conduit Loan  

SBA and CDC loans are backed by the government and maybe easier for businesses to be eligible for than other types of funding options. Conventional loans typically require excellent credit and some sort of down payment. A commercial bridge loan is usually a short-term loan, while a hard money loan may be best suited to those with poor credit ratings. Lastly, as for a conduit loan, expect flexible terms and fixed rates.

How to Qualify

If you are seeking a commercial real estate loan, recognize that this is very different than a conventional mortgage loan. Lenders have different criteria for approving your CRE. Here is what you need to do to qualify for funding.

Increase your credit score

While not the most important aspect of your CRE application, a strong credit score is a must for approval. Plan on improving your score. Particularly if it is under 600 currently.

Consider your net worth

Most lenders will want to see your net worth. For example, it should at least be equal to the amount of the loan that you are requesting. Figure out your net worth by deducting your liabilities from assets.

Create more liquidity

Assure that you have enough liquidity and cash on hand to cover the down payment. As well as any unexpected business expenses that could arise.

Document expertise

Some lenders may want to see your portfolio to determine how much experience and expertise you have in the industry. Be prepared to document your years of experience in the business.

Provide proof of income

For this, you will need your cash flow statements.

Contact Us

Want to learn more about commercial real estate loans and funding options for your business? Talk to the industry professionals and experts at Champagne Global Capital Lending today!