Commercial property financing is a loan taken out by a business to purchase or refinance a commercial property. It is typically used to acquire a property or to make improvements to an existing property, such as a warehouse, office building, or retail space. The loan is usually secured by the property itself and is typically taken out for a longer period of time than a regular loan. You can get the professional commercial property financing services from Pallas Capital.
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Types of Commercial Property Financing
There are several different types of commercial property financing available. The most common types include:
• Conventional Loans: Conventional loans are the most common type of commercial property financing. These loans are typically backed by a bank or other financial institution and require a down payment, closing costs, and other fees.
• SBA Loans: SBA loans are loans backed by the Small Business Administration and are available to businesses that meet certain criteria. These loans typically require less money down and have lower interest rates than conventional loans.
• Bridge Loans: Bridge loans are short-term loans used to bridge the gap between the purchase of a new property and the sale of a current property. These loans are typically secured by the new property and have higher interest rates than conventional loans.
• Private Financing: Private financing is available from private lenders, such as hedge funds or venture capitalists. These loans typically require more money down and have higher interest rates than conventional loans.
• Hard Money Loans: Hard money loans are short-term loans secured by the property itself. These loans typically require more money down and have higher interest rates than conventional loans.