Private Money Loans
Asset-based financing secured by the property itself, built for investors who need to move faster than conventional underwriting allows.
Learn more about Private Money LoansLoan Services
Commercial Real Estate Loans
Financing for income-producing and owner-occupied commercial property, underwritten on the asset, its tenants and its cash flow.
How commercial real estate loans work
Commercial real estate lending covers retail, office, light industrial, multifamily, mixed-use, hospitality and special-purpose property. Underwriting is more involved than on residential investment property because there are more moving parts: the quality and length of the leases, the creditworthiness of the tenants, the condition and functionality of the building, and the depth of the market for that specific property type in that specific location.
Commercial loans divide broadly into investment property financing, where tenants pay the rent that services the debt, and owner-occupied financing, where the business operating from the building supports the loan. The two are underwritten differently — one examines the rent roll, the other examines the business — and knowing which category you are in shapes everything about how your file is prepared.
Potential uses
When this financing fits
- Acquiring retail, office, light industrial, multifamily or mixed-use investment property.
- Buying the premises your own business occupies instead of continuing to lease.
- Refinancing a maturing commercial loan, or replacing bridge debt with permanent financing.
- Releasing equity from a stabilised commercial asset to fund expansion or another acquisition.
- Funding tenant improvements, leasing commissions or capital expenditure on a building you already own.
- Financing a property that does not fit standard bank criteria — an unusual asset type, a shorter operating history, or a tenant mix a bank is not comfortable with.
Before you borrow
Borrower considerations
Your leases are the asset
On an investment property, the value and the loan both rest on the rent roll. Lease length, renewal and termination rights, escalation provisions, who pays which operating costs, and the financial strength of each tenant are all examined. Have complete, signed leases available — gaps here are a frequent cause of delay.
Tenant concentration is a real risk
A building where one tenant provides most of the income is more exposed than one with a diversified roll, and underwriting will reflect that. Pay particular attention to when that tenant's lease expires relative to when your loan matures.
Diligence is broader than on residential
Expect environmental assessment, a property condition report, a survey and detailed title work in addition to the valuation. These take time and cost money, they are generally paid by the borrower, and they should be budgeted and scheduled from the beginning rather than discovered mid-process.
Many commercial loans do not fully amortise
It is common for payments to be calculated over a long schedule while the loan itself matures much sooner, leaving a balance due at the end. Know whether your loan has a balloon payment and when it falls, and begin planning the refinance or sale well in advance of that date.
Owner-occupied files are business files
If your own business will occupy the building, the lender is underwriting the business as much as the property. Business financial statements, tax returns and interim figures will be required, and the strength of the operating company is central to the decision.
Recourse is a negotiable term
Whether the principals guarantee the loan personally, and to what extent, varies by lender and deal. It is one of the most consequential terms in a commercial loan and it is worth discussing explicitly rather than discovering in the documents.
The process
What happens, step by step
Discuss the property and purpose
Property type and location, whether it is investment or owner-occupied, purchase or refinance, the amount required and the timeline.
Financial review
Rent roll and operating statements for investment property, or business financials for owner-occupied, so coverage can be assessed realistically.
Assemble the file
Signed leases, three years of operating history where available, a current rent roll, entity documents, principals' financial statements, and any existing survey, environmental or condition reports.
Third-party reports
Valuation, environmental assessment and property condition report are ordered, alongside title and survey review. We will tell you what to expect and roughly when.
Terms and underwriting
Written terms set out rate, amortisation, term, any balloon, recourse, covenants and all costs. Full underwriting follows your acceptance.
Closing
Legal documentation, title and insurance are coordinated through to funding.
Questions
Commercial Real Estate Loans FAQs
How is a commercial loan different from a residential investment loan?
The underwriting is broader and the diligence is heavier. A commercial lender examines the leases and the tenants behind them, the building's physical condition and functional suitability, and the depth of the market for that asset type. Third-party reports beyond a valuation are standard, loan documents are negotiated rather than standardised, and timelines are longer. Begin earlier than you would on a residential file.
Can I finance the building my own business occupies?
Owner-occupied commercial financing is a well-established path for businesses that would rather build equity than pay rent. The underwriting focuses on the operating business — its financial statements, tax returns and trading history — alongside the property itself, since the business is what services the debt. Prepare business financials with the same care you would give the property information.
What is a balloon payment and should I be concerned about one?
A balloon is the balance remaining when a loan matures before it has fully amortised, and it is a normal feature of commercial lending rather than a trap. It becomes a problem only when it arrives unplanned. Know the date, and start arranging the refinance or sale a long way ahead of it — markets and lending conditions can change over the life of a commercial loan.
What third-party reports will I have to pay for?
Commonly a valuation, an environmental assessment, a property condition report, a survey and title work, though the exact set depends on the property type, its history and its location. They are typically the borrower's cost and they take time to complete. We will tell you which reports your deal needs and give you an honest view of the timeline before you commit to contract deadlines.
Does the loan have to be personally guaranteed?
It depends on the lender, the asset, the leverage and the strength of the borrowing entity. Some commercial loans are non-recourse, many are fully recourse, and a great many sit somewhere in between with guarantees limited to specific circumstances. Treat it as a term to be negotiated and understood, not a formality — and raise it early.
How long does a commercial loan take to close?
Longer than a residential loan, because the third-party reports and the legal documentation genuinely take time. The pace is usually set by how quickly reports can be completed and how fast complete financial information is provided. The single most effective way to shorten a commercial timeline is to have the leases, the rent roll and the operating statements ready on day one.
Next steps
Other financing that may fit
Many projects use more than one of these in sequence — a short-term loan to acquire and improve, then longer-term financing to hold.
Bridge Loans
Short-term financing that covers the gap between where a property is today and the permanent financing or sale that pays the loan off.
Learn more about Bridge LoansFix-and-Flip Financing
Purchase and renovation capital in a single facility, with construction funds released in stages as the work is completed.
Learn more about Fix-and-Flip FinancingRental Property Financing
Longer-term financing for income-producing residential property, underwritten primarily on what the asset earns.
Learn more about Rental Property FinancingConstruction & Development Financing
Ground-up and major redevelopment financing, advanced in stages against verified construction progress.
Learn more about Construction & Development FinancingTalk to us about your deal
Tell us the property, the plan and the timeline. We will tell you honestly whether we can help and what the realistic next step is.