A commercial loan is a type of loan that is used to finance commercial real estate or business properties, such as office buildings, retail spaces, or warehouses. Commercial loans are typically different from residential mortgage loans in that they are used to finance income-generating properties and have different requirements and terms.

Commercial loans can be used to purchase a new property, refinance an existing property, or make improvements to an existing property. They are typically secured by the property being financed and may require a down payment of 20% or more of the purchase price. The loan terms and requirements can vary based on the lender and the type of property being financed.

To qualify for a commercial loan, borrowers typically need to have a good credit score, a solid business plan, and a history of generating income from the property or business being financed. The lender will also evaluate the property or business to ensure it is a good investment and can generate enough income to cover the loan payments.

Commercial loans can have fixed or variable interest rates and may have shorter repayment terms than residential mortgage loans, typically ranging from 5 to 20 years. It’s important to carefully consider the costs and risks associated with a commercial loan, including the potential for fluctuations in the commercial real estate market and the costs of owning and maintaining the property or business.

Overall, commercial loans can be a useful tool for businesses looking to purchase or refinance a commercial property. Working with a reputable lender or mortgage broker, such as Arrive Realty & Finance, can help businesses navigate the loan process and choose the best option for their financial goals.