Commercial loans are designed for business owners or investors seeking to acquire businesses, commercial properties, or fund business operations. These loans cater to both business owners and investors in commercial properties. While similar to home loans, commercial loans differ in loan-to-value ratios, interest rates, and income requirements.

Commercial Property Loans

Commercial property loans share some similarities with home loans, including a focus on the borrower's credit, loan documents, property valuation, and contract terms. However, due to the business-related nature of the assets, these loans tend to be more complex and typically require professional assistance. Eligible properties include warehouses, retail shops, office buildings, multi-unit properties (more than four units), and more. Once a lender shows interest in your proposal, the application process can begin.

Benefits of Commercial Loans

Tax Advantages: Interest on commercial loans can be deducted as a business expense, and depreciation on business assets like property and vehicles may also be tax-deductible.
Risk Sharing: Banks help share the financial risk by lending money for business expansion or property investments. However, commercial loans are highly individualized, depending on the borrower's unique situation. Consulting with a professional broker is recommended to create a tailored loan proposal.