Commercial Real Estate Loans

Compare best commercial real estate loan rates without impacting your credit score.

Enter loan amount
Our Lending Partner Network
Commercial Real Estate Loans

Compare Commercial Real Estate Loan Rates

Commercial real estate is any property that is used for business purposes, such as an office, hotel, retail store, or farm supply store. If you want to purchase a property to use for your business or expand and grow your current business, you’ll need a commercial real estate loan.

Applying for a commercial real estate loan is fast and easy:

Fill out a simple and fast online application in just minutes

Compare best business loan rates and choose your offer

Receive funds from $5K - $1,000,000+ towards your business needs

Absolutely no negative impact on your credit score, ever.

Compare Commercial Real Estate Loans

What is a commercial real estate loan?

A commercial real estate loan is just another type of mortgage – it’s a loan to purchase a property for commercial purposes, with the loan secured on the property (called a lien).

Compare commercial real estate lenders

Funding Circle

Funding Circle

Funding: Borrow $25,000 to $200,000
Minimum Credit Score: 700
Loan term: 6-12 months
Funding turnaround: 24-48 hours

Funding Circle offers affordable business loans with interest rates lower than alternative lenders with monthly repayment schedules for borrowers with good to excellent credit scores.

SBA 7a

SBA 7(a) loan

Funding: Borrow up to $5,000,000
Minimum Credit Score: 650
Best For: SBA loans
Funding turnaround: Varies.

The SBA 7(a) program features lenders such as Wells Fargo in their network and provides capped interest rates and long repayment term flexibility. Term loans and lines of credit access available. Typically, collateral will be required with a personal guarantee. Funding times vary and may be longer than most other lenders.

How does a commercial real estate loan work?

Commercial real estate loans work the same way as a residential mortgage. You’ll need a down-payment for the property (typically 20-30%, though what you’re required to offer will vary) and once you’ve secured the property, you’ll pay a monthly payment to pay off the loan and the interest the loan incurs.

What are the different types of commercial real estate loans?

As with residential mortgages, there are a few different types of commercial real estate loans for you to choose from. They are:

  • Permanent loans: These loans aren’t as scary as they sound – this is the term for the quintessential mortgage you get when you first purchase a property. These loans are almost identical to the mortgages you get for a home you’re going to use as a residence, in that they have long terms with variable or fixed rate periods.
  • Bridge loans: bridge loans are best used when you’re looking to refinance or improve a property you already own, as they’re designed to “bridge” the gap in your cash flow and provide money over a short-term (usually less than 12 months) so you can make the improvements necessary.
  • Hard money loans: Hard money loans are commercial real estate loans you secure from individuals or private companies, and are secured on the value of the property more than your ability to pay the loan back. If you are unable to pay, they simply seize the property and sell it. This makes them easier to secure, but the interest rate is usually higher than a more traditional form of commercial real estate loan, and you usually only have 1-5 years to pay it back.
  • Blanket loans: Blanket loans are a good choice if you’re planning to buy multiple properties – for example, if you planned to buy three storefronts. This makes things easier since you have one payment, one set of terms, and one lender to work with, but comes with higher risk. If one business was to fail, your other two would be in jeopardy.
  • SBA loans: The Small Business Administration (SBA) offers two loans that are suitable for real estate, their 7(a) loans and their 504 loans. The 7(a) is their most popular loan, though the 504 loan is usually the most suitable. The 504 loans are designed for major assets and are a great choice if you’re going to be improving a building within an established community.

What are the pros and cons of commercial real estate loans?


  • Allows you to own property so you’re building your net worth rather than paying for a lease
  • You can use them to make improvements that will increase the value of the property
  • Rates for traditional loans are low, so your monthly payments may be less than you would pay if you rented
  • You can change the property as your needs change without having to move to a new location
  • You can lease units to other businesses or as residences, which is a favored way to build monthly revenue and net worth with a relatively low time investment


  • You need extensive documentation to prove your creditworthiness to get lower rates
  • You need the money for the down-payment, which can be a substantial amount of money to tie up in an asset
  • It may not make a significant difference to how successful your business is
  • It can take a long time to find the right property and the right funding
  • Some of the commercial real estate loans that are easier to get are much more expensive
  • If you can’t keep up with the payments you’ll lose the property

What can you use a commercial real estate loan for?

You can use a commercial real estate loan to purchase a new property for your business or to fund improvements on your current premises. You can use it on:

  • New construction
  • Bridge financing
  • To purchase additional land
  • Renovate your current business

What are the different types of commercial real estate?

You can use a commercial real estate loan to buy or improve:

  • Retail stores
  • Apartment buildings and multifamily units
  • Offices and office complexes
  • Hotels, motels, Airbnbs
  • Medical facilities
  • Land
  • Warehouses, factories, and other industrial facilities

What kind of rates can I expect to pay on a commercial real estate loan?

This will vary depending on the type of loan you choose, your down-payment, and a range of other factors. However, you can generally expect the following rates:

  • SBA 7(a) loan: 5.5 – 11.25%
  • SBA 504 loan: 2.231 – 2.399%
  • Bridge loan: 4.2 – 13.2%
  • Hard money loan: 10-18%

Most commercial real estate loan rates are between 3% and 6%.

Commercial real estate loan calculator

Estimate monthly payments on a commercial real estate loan by trying our calculator.

How much do you need to borrow?


Total Payment


Total Interest


Monthly Payment


Ready to get funded?

Compare personalized business loan rates from top lenders with no impact on your credit, ever.

Find Your Personalized Rate

Quick links

Business Loans

Ready to apply for commercial real estate financing? Get started today.

Need help finding the right loan?

No worries, we've got you covered! Compare personalized loan options in just minutes without impact on your credit score.

Are commercial real estate loans hard to get?

They can be – it depends on:

  • Your credit history (and/or that of your business)
  • Your down-payment
  • The location and value of the property
  • Your income or revenue

If you have a large down-payment you’ll find it much easier to get a commercial real estate loan than if you only had 15% to put down.

How much can I get with a commercial real estate loan?

As with a residential mortgage, how much you can borrow depends on the factors we talked about above. In a very general sense, you can borrow anything from $25,000 up to $5 million, though there are funding options for those looking to fund projects above that amount, too.

How does repayment work with a commercial real estate loan?

Commercial real estate repayments work just like a normal term loan or mortgage – you’ll be required to pay a monthly payment over the term of the loan to pay it off, plus the interest.

What do you need to qualify for a commercial real estate loan?

To qualify for a commercial real estate loan, you’ll need:

  • To be (or plan to be) the owner-occupier of at least 51% of the building (if you plan to do otherwise, do your research to find the right kind of commercial real estate loan for you
  • Have a low revenue-to-debt ratio in your business (a ratio of 1.25 – divide your net operating income by your annual total debt service)
  • Your business credit score should be relatively high
  • Your personal credit score should also be good and clear of recent major hiccups such as bankruptcies
  • A down-payment of 20-40%

Is a commercial real estate loan right for your business?

If you know that purchasing property is the right next step for your business, then it’s likely the best move for you. It’s also a good choice if you need to improve your current premises.

However, if you don’t yet own a commercial property, think seriously about whether it’s the right move for your business. Make sure you think about how it will affect your financial security and if it’s a good time to buy or not.

In some circumstances, your business will necessitate that you purchase property, but most businesses can operate leasing their premises. Make sure that it’s a sound investment before you move forward.

How to get a commercial real estate loan

To get a commercial real estate loan, you should first make sure you’re ready to apply. Start getting the following information together so you’re ready to share it with lenders:

  • Your business tax returns
  • Your financial records and reports
  • Your last 3-6 months of business bank statements
  • An appraisal of the property (if you already own it or know what you want to purchase)
  • A strong business plan

Note that a Hard Money loan lender will be more worried about the value of the property now and in the future, so you may want to have plans you can share about how you’ll improve the property if you plan to get a Hard Money loan.

Once you’re ready to apply, it’s time to start comparing rates. Remember that the lower rate you can get the better, though expect them to be higher if you’re going to be looking for a Hard Money or Bridge loan. Browse through the lenders in our comparison tables and find those that best suit your circumstances, then read their specific requirements. When you find the one that best suits your business, start the application process. With the right preparation, you’ll soon secure the funding you need to move your business forward.

Compare Business Loan Offers

How Pasha Funding Works

How it Works
Apply in minutes

Get pre-qualified in minutes and compare offers from top lenders.

Choose your offer

Compare and choose an offer that works best for you based on your timeline and budget needs.

Get funded

After your loan is approved with the lender of your choice, receive your funds.

Popular Business Funding Options

Get Fast Funding For Your Business

Compare business loans from top lenders without negative impact on your credit score.

Business Loans By Credit

Business Loans for Fair Credit
Business Loans for Good Credit
Business Loans for Excellent Credit