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How Much Can You Borrow Against a Commercial Property?

You can think of a commercial real estate loan very much like a residential real estate loan. You borrow money using your commercial property as collateral for the sake of purchasing, building, or renovating a commercial property. You can even borrow money against a commercial real estate property to use to purchase other real estate property, or to use in the financing of other investment opportunities you may find. Known as commercial real estate loans, these types of loans are often used by real estate investors and small businesses, frequently to grow either their investment portfolio or to expand their business in some way, such as with expansion or in products and services.

Commercial Capital Partners is a commercial lender who can help you obtain a commercial loan for your property. We offer free, no-obligation consultations where we offer a comprehensive financial analysis and recommend the best commercial loan for you. Below, we'll answer the question of how much you can borrow against a commercial property. Contact our commercial finance company today!


As much as we'd like to give you a firm answer to how much you can borrow against a commercial property, the answer is that it depends. There are many different factors that go into commercial property loans that can influence your lender's decision. Some factors that determine how much you can borrow against a commercial property include:

  • The type of commercial real estate loan you use

  • The state of the economy

  • Your financial background, such as either your credit score or your business credit score

  • The current state of the real estate market in your area

  • Annual business revenue

  • Percentage of the commercial property that is occupied or will be occupied

  • Debt service coverage ratio

  • Loan-to-value ratio

  • Any special circumstances

  • And other criteria

As you can see, as much as we'd like to give you a definitive answer, the reality is you just have to go through the loan process when you are ready to get a solid answer. We can, however, offer you some general guidelines that apply to most people seeking a commercial loan:

  • Typically you can get commercial financing between 80 and 90% of the commercial property's purchase price. This equates to having between 10 and 20% to put down.

  • Commercial property's interest rates tend to be higher than residential rates due to the increased risk, since, let's face it, if the economy tanks and you lose your job, you are not paying your commercial property loan over your home loan.

  • Fees tend to be higher as well with commercial property loans than residential loans, with appraisals being more. Some loans also charge a guarantee fee or a prepayment fee.

  • Payments and terms work similar to any other installment loan, with terms usually up to 25 years and monthly payments.

  • Some commercial loans have a maximum amount you can take out against your commercial property.

  • Loan-to-value (LTV) is usually between 65 and 85%. LTV ratio is based on the fair market value of the commercial property between purchasing. This can mean you may have to cover up to 35% of the fair market value as your down payment.


There are so many options for commercial real estate loans today that while this is great for consumers who value choices, it can be dizzying as you try to decide which commercial loan product is right for you.

When you partner with Commercial Capital Partners for your commercial lending needs, we'll help you decide on the best business loan for you. Since we are not a huge, traditional commercial lender, our loan application process is easy. We offer commercial real estate financing loans, bridge and hard money loans, and CMBS loans, in addition to many more. Our mission is to find you the best business loan, which we do by providing many business loan options, including SBA 7(A) and 504 loan programs.

If you have less than stellar credit, that's okay. We work with all credit backgrounds in order to help you meet your dreams and goals. We have no prepayment penalties on our commercial lending products, and we offer wholesale rates. If you are looking for commercial real estate financing, you've come to the right place. Contact us to get started today!