Commercial Loan Programs
Commercial Real Estate (CRE)
A Commercial Real Estate Loan (CRE) is financing secured by a lien on commercial property. These loans are essential for businesses looking to acquire, develop or re-finance properties such as office buildings, retail centers, warehouses and apartment complexes.
These loans are pivotal for business expansion, enhance existing facilities, or invest in properties that generate rental income. By securing these types of loans, businesses can leverage real estate as an asset, potentially increasing their operational capacity and overall market value.
- Traditional Commercial Loans: This loan involves borrowing a lump sum and re-paying over a set period with interest. The loan is typically amortized over a long term, such as 20 to 30 years.
- SBA Loans: The Small Business Administration (SBA) offers two popular programs for commercial real estate: the SBA 7(a) loan and the SBA 504 loan. These loans are designed to provide small businesses with favorable terms and lower down payment requirements.
- Bridge Loans: A commercial bridge loan is short term financing that's used to fund property projects. Unlike traditional small business loans, commercial bridge loans a specifically used to "bridge the gap" between your current need for capital and a more long-term financing solution.
- Hard Money Loans: These types of loans are secured by real property. Many of the lenders can issue funds in as little as 10 business days. Most of the lenders can lend up to 65% to 75% of the property’s current value, and loan terms are generally short: 6 to 18 months
- Construction Loans: These loans are specifically designed for funding the construction of new buildings or major renovations. These loans are typically dispersed in stages as construction progresses.
- Portfolio Loans: This type financing allows for multiple commercial properties to be funded under a single loan. A portfolio loan considers the collective value and income of all properties in the portfolio, providing greater flexibility for favorable terms.
- DSCR Loans: A Debt Service Coverage Ratio (DSCR) rental loan is an attractive financing or refinancing option for real estate investors, particularly those focused on rental properties. Unlike traditional loans that heavily weigh personal income, a DSCR loan prioritizes the income generated by the property itself. This means that an investor's ability to secure financing depends primarily on the property's cash flow rather than their personal financial situation.
Small Balance Commercial Loans
At WHITTMORE BRILEY FINANCIAL, our Small Balance Commercial loan program refers to financing options for businesses provided by entities other than traditional banks. These programs offer an alternative to bank loans, typically designed to meet the needs of small and medium-sized businesses that may struggle to meet the strict requirements set by banks.
Our small balance commercial loan program is considered more flexible than bank loans in terms of qualification criteria, repayment terms, and loan structures. While banks generally require strong credit histories, established revenue, and collateral, our program is focused on cash flow, business potential and industry-specific factors. This allows businesses with less-than-perfect credit or limited collateral to access capital. The application process for WHITTMORE BRILEY FINANCIAL loans is often faster and more streamlined, making it an attractive option for businesses in need of quick funding.
The terms and interest rates for our loans may be higher than those of traditional bank loans due to the higher risk taken on by the lender. However, they offer greater flexibility in the face of market challenges or unconventional business models.
The industries who benefit from Financing or Refinancing are as follows:
Multifamily Units
Retail
Restaurant
Warehouse
Mobile Home Park
Light Industrial
Mixed-Use
Small Office Complex
Bar
Self-Storage
Daycare Center
Automotive
Minimal Terms & Conditions
- Documentation: Full Documentation, Lite Documentation, No Documentation and Commercial Bank Statements (12 month verifiable statements & Owner Occupied Only)
- Loan Size :$100,000 to $5MM
- Term Options: 5 Year ARM or 30 Year-Fixed
- Loan Purpose: Purchase, Cash Out & R/T Refinance
(For additional loan requirements please contact us at 615.949.3341)
Asset-Based Loans (ABL)
Utilizing asset-based financing in commercial real estate is a strategic approach that allows businesses and investors to leverage their existing assets to secure funding for new projects or ongoing operations. The loan is based exclusively on real estate assets used as collateral. This type of financing is particularly advantageous for those who may not qualify for traditional loans due to credit constraints or who prefer to use their assets as collateral to obtain more favorable terms.
Asset-based financing involves using real estate, equipment, inventory, or accounts receivable as collateral for a loan. In the context of commercial real estate, this typically means using property or other tangible assets to secure financing. The value of the asset plays a critical role in determining the loan amount, making this a viable option for businesses with substantial physical assets but limited liquidity.
Industries who benefit: Fix n Flip, Fix n Lease & New Builder Construction
There are several types of loans within the asset-based financing category:
1. Commercial Mortgages: These are loans secured by commercial property, such as office buildings, retail spaces, or industrial properties. The property itself serves as collateral, and the loan amount is typically based on the property's appraised value.
2. Bridge Loans: Short-term loans that "bridge" the gap between buying a new property and selling an existing one. These loans are secured by the value of the property and are ideal for investors needing quick capital to take advantage of time-sensitive opportunities.
3. Construction Loans: These are specialized loans used to finance the construction of a new commercial property. The loan is secured by the property being developed, with funds disbursed as construction milestones are met.