Commercial Real Estate Loans Transform Businesses Secrets Inside
Types of Commercial Real Estate Loans
There are several types of commercial real estate loans available, each suited to different business needs and financial situations:
1. **Traditional Commercial Mortgages**: These are similar to residential mortgages but typically have shorter terms, ranging from five to twenty years, with the property itself serving as collateral.
2. **SBA 504 Loans**: Offered by the U.S. Small Business Administration, these loans are designed to help small businesses purchase fixed assets like real estate or equipment. They often feature lower down payments and longer repayment terms1.
3. **Bridge Loans**: Short-term loans intended to bridge the gap until permanent financing is secured or the property is sold. They are ideal for businesses that need immediate funding.
4. **Hard Money Loans**: These are asset-based loans provided by private lenders, often used for quick financing needs or properties that do not qualify for traditional lending.