Owning a property for your business can be one of the smartest moves you make. Whether you're planning to open a new storefront, expand to a larger facility, or invest in office space, purchasing commercial real estate is a big step—and one that typically requires serious financing.

If you're wondering how to secure the right loan, what type of funding makes sense, and what to expect during the process, you're in the right place. In this guide, we'll walk you through the ins and outs of commercial real estate loans and how they fit into broader business financing solutions like SBA loans, term loans, working capital loans, and more.

Let's break it down in a simple, no-jargon way.

What Is a Commercial Real Estate Loan?

A commercial real estate loan is a mortgage loan used to buy or renovate property for business use. This type of loan is different from a residential mortgage because it's tailored specifically to businesses, not individuals. Whether you're a startup or an established company, this type of business loan can help you own the space where your operations take place.

Commercial properties can include:

  • Retail buildings



  • Office spaces



  • Warehouses



  • Manufacturing facilities



  • Mixed-use buildings



  • Medical or dental offices



These loans are typically secured by the property being purchased or improved, which means the property acts as collateral. If you fail to make payments, the lender can take ownership of the building. So it's important to understand your options and obligations.

Why Should You Consider Buying Instead of Leasing?

Many business owners start by leasing property. It's quick, flexible, and doesn't demand a large upfront investment. But leasing means you're investing in someone else's asset—and over time, that cost adds up.

Here are some reasons you might want to own:

  • Build equity: Your monthly payments go toward something you own, not just rent.



  • Control your space: You can renovate or expand the way you want.



  • Stable costs: Locking in a loan means no rent hikes.



  • Investment opportunity: Your property could appreciate over time.



Still, buying isn't for everyone. It requires a larger upfront cost and a long-term commitment. That's why securing the right type of small business funding is crucial.

Types of Commercial Real Estate Loans

When you're ready to finance your property purchase, you'll find a few major options. Each comes with its own pros, cons, and qualifications. Let's explore them.

1. SBA Loans

SBA loans are partially backed by the U.S. Small Business Administration, which makes them less risky for lenders—and more accessible for small businesses.

The two most common SBA options for commercial property purchases are:

  • SBA 504 Loans – Specifically designed for real estate and equipment purchases. These loans offer fixed rates and long repayment terms (up to 25 years).



  • SBA 7(a) Loans – More flexible and can be used for various business needs, including buying or improving real estate.



These loans typically require a solid credit history, a detailed business plan, and a down payment (often around 10%).

Best for: Small businesses looking for lower interest rates and longer terms.

2. Term Loans

Term loans are one of the most straightforward business financing solutions. You borrow a fixed amount and repay it over a set period, often with fixed interest.

These can be issued by traditional banks or alternative lenders. With term loans, you might be able to borrow larger amounts, but the qualifications can be stricter if you go through a bank.

Some lenders, like Fast Growth Capital, also offer fast approvals and flexible terms to help businesses move quickly on opportunities.

Best for: Businesses that need a lump sum with predictable payments.

3. Working Capital Loans

While working capital loans are typically used for daily operations like payroll, inventory, or short-term expenses, some business owners use them strategically to cover down payments or renovation costs tied to property purchases.

These loans are usually shorter-term and carry higher interest rates, but they're often easier to qualify for and faster to get.

Best for: Businesses that need short-term cash flow to support a property deal or improvements.

4. Fast Capital Loans

Sometimes, speed is everything. If a great property becomes available and you need to act fast, waiting weeks for traditional bank approval could mean missing out.

Fast capital options from alternative lenders provide quicker funding—sometimes in as little as 24–48 hours. These loans can bridge the gap while you arrange long-term financing or cover costs upfront.

Best for: Business owners who need urgent access to funds.

What Lenders Look for When You Apply

Getting approved for a commercial real estate loan involves more than just filling out a form. Lenders assess your financial strength, business history, and property details to ensure the investment is sound.

Here's what they usually want to see:

  1. Business Credit Score: A strong score shows you're responsible with money.



  2. Revenue History: Consistent income reassures lenders you can repay.



  3. Down Payment: Most lenders require 10–30% down, depending on the loan.



  4. Property Details: Lenders evaluate the property's location, condition, and value.



  5. Business Plan or Projections: Especially important for startups seeking startup funding.



The better your numbers look, the better your terms will be.

Preparing to Apply: What You'll Need

To improve your chances of approval, gather the following documents:

  • Business tax returns (2–3 years)



  • Personal and business financial statements



  • Business licenses and registrations



  • A detailed business plan



  • Lease agreements or current property deeds (if applicable)



  • Information about the property you want to buy



Being organized and transparent can go a long way with lenders.

How Much Can You Borrow?

Loan amounts vary depending on the lender, your financials, and the property type. Here's a general idea:

  • SBA 504 Loans: Up to $5 million



  • SBA 7(a) Loans: Up to $5 million (sometimes more)



  • Term Loans: Ranges widely, from $50,000 to $2 million+



  • Working Capital Loans: Typically smaller amounts ($10,000–$500,000)



Your ability to repay—and your overall business health—will play a big role in determining how much you can borrow.

Understanding Costs and Fees

Beyond your monthly loan payments, there are other costs to keep in mind:

  • Appraisal fees



  • Closing costs



  • Origination fees



  • Inspection fees



  • Legal and title fees



These can add up, so it's smart to budget 2–5% of the loan amount for these extras. Also, consider property taxes, maintenance, and insurance.

Tips for Getting the Best Terms

Even if you qualify for a loan, you want to get the best deal possible. Here are some tips:

  • Improve your credit: Personal and business credit scores matter.



  • Build a solid business plan: Show lenders you've done your homework.



  • Shop around: Don't settle for the first offer—compare lenders.



  • Work with experienced advisors: Financial experts can help guide you.



  • Act fast but smart: Speed matters, especially in a competitive real estate market—but don't rush into the wrong loan.



Common Mistakes to Avoid

Securing a commercial real estate loan can be exciting, but don't fall into these traps:

  • Overborrowing: Don't take more than you can comfortably repay.



  • Ignoring fine print: Understand prepayment penalties, variable rates, and fees.



  • Underestimating costs: Don't forget about maintenance, repairs, and taxes.



  • Skipping professional advice: Talk to a financial advisor or commercial real estate agent.



Final Thoughts: Is Buying Right for You?

Buying commercial property is a big step—and for many businesses, it's the right one. You gain stability, control, and a long-term asset that supports your growth.

But it's also a serious financial commitment, and choosing the right business loan is essential. Whether you go for an SBA loan, a term loan, or a fast capital option, make sure the financing solution matches your goals, cash flow, and risk tolerance.

Ready to Move Forward? Fast Growth Capital Can Help

If you're ready to purchase property and need quick, reliable funding, Fast Growth Capital is here to support your journey. With flexible options for small business loans, working capital loans, and more, we make it easier for you to secure the business financing solutions you need—without the long waits or confusing processes.

Let us help you turn that business property dream into a reality.

Explore your options today at FastGrowthCapital.com.