Commercial Loans — Financing for Business Property and Operations
Commercial loans through PierPoint Mortgage provide businesses with financing for real estate acquisition, equipment purchases, expansion projects, and working capital needs. From SBA-backed programs to conventional commercial mortgages and bridge financing, PierPoint connects business owners with the right capital structure for their specific commercial objectives. Call (844) 241-7720 to discuss your business financing needs.
Overview
What Are Commercial Loans?
Commercial loans are financing products designed to meet the capital needs of businesses, from small companies to large enterprises. Unlike residential mortgages that finance personal home purchases, commercial loans fund business-related objectives including real estate acquisition, equipment purchases, inventory financing, tenant improvements, and operational cash flow.
Commercial loan structures vary significantly based on the purpose, collateral, and borrower profile. Term loans provide a lump sum with fixed or variable rates over a set repayment period. Lines of credit offer revolving access to capital as needed. SBA-backed programs provide government-guaranteed financing with favorable terms for qualifying small businesses.
PierPoint Mortgage specializes in commercial real estate loans that finance the purchase, refinance, or development of business property including office buildings, retail spaces, industrial facilities, multi-family apartments (5+ units), and mixed-use properties. Our extensive lender network ensures competitive rates across property types and borrower profiles.
Types
Types of Commercial Loans
Commercial Real Estate Loans
Finance the purchase, refinance, or cash-out of commercial property including offices, retail, industrial, multi-family (5+ units), and mixed-use buildings.
SBA Loans
Government-backed loans with lower down payments and longer terms. SBA 7(a) for general business purposes and SBA 504 for major real estate and equipment purchases.
Bridge Loans
Short-term financing (1-5 years) used to bridge the gap between an immediate capital need and long-term financing. Common for property acquisitions and value-add renovations.
Equipment Financing
Loans or leases secured by the machinery, vehicles, technology, or other equipment being purchased. The equipment itself serves as collateral.
Term Loans
Lump-sum disbursement repaid over a fixed period with predictable monthly payments. Available with fixed or variable interest rates.
Lines of Credit
Revolving credit facilities that allow businesses to draw funds as needed, pay them down, and draw again. Used for working capital and managing cash flow cycles.
Process
How Commercial Loans Work
1
Initial Consultation
Discuss your business financing objectives with a PierPoint commercial specialist. We evaluate the project scope, property details, and borrower qualifications to identify the best lending programs.
2
Document Collection
Submit business tax returns, financial statements (balance sheet, P&L, cash flow), bank statements, rent rolls (for income properties), and personal financial statements.
3
Loan Matching
We match your project to the optimal lender and program from our network. Different lenders specialize in different property types, loan sizes, and borrower profiles.
4
Appraisal and Underwriting
A commercial appraisal determines property value. The underwriter reviews business financials, property cash flow, borrower credit, and collateral to finalize the loan decision.
5
Commitment and Terms
The lender issues a loan commitment with finalized terms including rate, fees, prepayment provisions, and conditions to close.
6
Closing and Funding
Legal documents are prepared, title is transferred or refinanced, and funds are disbursed to complete the transaction.
Advantages
Benefits of Commercial Loans
Large Capital Access
Commercial loans provide the substantial capital that business growth requires, from six-figure equipment purchases to multi-million-dollar property acquisitions.
Tailored Structures
Loan terms, repayment schedules, and rate structures can be customized to match your business’s cash flow patterns and growth trajectory.
Tax Benefits
Interest payments on commercial loans are typically tax-deductible as business expenses. Real estate depreciation provides additional tax advantages.
Equity Building
Owning commercial property builds equity over time while providing stable, predictable occupancy costs compared to leasing.
SBA Programs
Government-backed options offer lower down payments (as low as 10%), longer terms (up to 25 years), and below-market rates for qualifying businesses.
Ideal Borrower
Who Should Consider a Commercial Loan?
Commercial loans serve business owners and investors who need capital for real estate, equipment, expansion, or operations. If you are purchasing or refinancing commercial property, a commercial mortgage provides long-term financing at competitive rates with the added benefit of equity accumulation.
Small business owners who want to buy rather than lease their operating space benefit from SBA-backed programs that offer lower down payments and longer terms than conventional commercial loans. The SBA 504 program is particularly attractive for owner-occupied properties, with down payments as low as 10%.
Real estate investors targeting multi-family properties with 5 or more units, retail centers, office buildings, or industrial facilities use commercial loans as their primary acquisition and refinance tool. The loan is underwritten based on the property’s income-producing capability, making it accessible to investors with strong property portfolios.
Comparison
How Does This Compare?
FAQ
Frequently Asked Questions
What documents are needed for a commercial loan?
Standard documentation includes 2-3 years of business tax returns, profit and loss statements, balance sheets, bank statements, personal financial statements, business licenses, entity documents, and a rent roll or property operating statement for income-producing properties.
What credit score is needed for a commercial loan?
Most commercial lenders require a minimum personal credit score of 660 to 680 for the guarantor(s). SBA programs may accept scores as low as 650 with strong compensating factors such as significant collateral or business cash flow.
How long does it take to close a commercial loan?
Commercial loans typically close in 30 to 90 days depending on complexity. SBA loans tend to take 60 to 90 days due to the government review process. Bridge loans can close in as little as 14 to 30 days.
Do I need a personal guarantee?
Most commercial loans for small and mid-size businesses require a personal guarantee from owners with 20% or more ownership. This means the guarantor’s personal assets are at risk if the business defaults on the loan.
Can I refinance an existing commercial loan?
Yes. Commercial refinancing can lower your interest rate, extend your term, reduce monthly payments, or extract equity through a cash-out refinance. PierPoint can evaluate your current loan terms against available programs to determine if refinancing makes financial sense.
Related Products
Explore More Loan Options
Available Across 15 States
PierPoint Mortgage is licensed and lending in Alabama, Colorado, Connecticut, Florida, Georgia, Louisiana, Michigan, Mississippi, New York, North Carolina, Ohio, Oregon, Pennsylvania, and Washington.
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Ready to Get Started?
Speak with an experienced PierPoint Mortgage loan officer today. We will help you find the right loan for your goals and guide you through every step of the process.
