Commercial real estate financing is the answer for many business needs. What type of real estate financing is best for your business? There are many different options to choose from.

SBA 504 Loans

This type of loan is ideal for large real estate investment projects. Small businesses that rely on property management or construction to generate profits can benefit immensely from this option. SBA 504 loans feature large financing amounts with minimal interest rates. They’re a great choice for fix and flip properties and other types of commercial development projects.

SBA 7A Loans

Another government-backed loan, SBA 7A financing programs offer incredible interest rates that are advantageous for any small business owner. This is a popular loan option for small businesses looking for owner-occupied property. Not only do SBA loans help you qualify more easily as a small business owner, they also give you access to capital and interest amounts you probably wouldn’t get otherwise. These loans are faster than 504 loans, easier to work with, and highly adaptable. For example, you can even include working capital and equipment financing in the same 7A loan you use for commercial real estate.

Bridge Loans

Also known as hard money loans, these financing tools aren’t designed for long-term use. You would never use a bridge loan to finance the complete real estate loan or pay for a property long term. However, this option is very valuable when speed is of the essence. Commercial developers often use bridge loans when great deals appear on the horizon. That way you can snatch up a valuable property before other buyers, closing quickly. After that, the idea is to transfer the loan balance to a low-interest conventional loan or SBA loan.

Traditional Loans

Don’t let the terms “conventional” or “traditional” make you think this option is too old to be useful. Conventional merely means that this type of financing has normal approval requirements. You need a good credit score and possibly a business asset to qualify. However, the upside is that you get much larger financing amounts than with SBA loans and comparable or lower interest rates, along with flexible repayment terms. If you qualify, you’re in for a treat.

If you’ve been dreaming of purchasing your own business location, commercial real estate financing can make it happen. This applies to buying an existing property or building your own location from the ground up. You can also use real estate loans to expand your business or remodel it. This can attract more clients and also give your team better results every day.