The Best Commercial Real Estate Loans Explained
Fora Financial was established in 2008 and has provided finances to over 25,000 businesses. Fora Financial is generally upfront about their potential requirements and costs. While its turnaround time on its loans might be a little longer than other online lenders, it is still quicker than most banks. Fora Financial is a top choice for startup businesses or those that don’t boast high annual revenue. Fora Financial can help such businesses deal with gaps in their cash flow.
- Competitive factor rates
- Early payoff discounts up to 30%
- Relevant for small businesses
- No minimum credit score needed
- Daily payments needed
- Turnaround might take up to three days
- Not entirely transparent about costs
A bridge loan can help your business out in the following ways:
- Provide you with money to complete projects - you can use a bridge loan to cover the costs that are required during a project
- Give you the finances to help you bid on more jobs - you can bid on more projects so that when one ends you will have another lined up
- Make sure you have money to pay your employees on time - this may help you retain your current employees
- Be capable of meeting last-minute costs - if equipment breaks or you require more inventory you can use a bridge loan
If you are, for example, a construction business owner you may be used to bidding on projects, but only getting paid at the start or end of a job. If you apply and receive a bridge loan from Fora Financial, you can pay your employee salaries and buy the tools you need.
Since it was founded in 2005 Rapid Finance has grown into the fourth largest online small business lender. The platform specializes in helping out those that might have been rejected by other lenders or might not qualify for traditional loans.
- Eligibility requirements are left open
- Excellent customer service
- No prepayment penalties
- Borrowing range suitable for small businesses
- Interest rates aren’t disclosed before applying
- No funding turnaround times are given
Rapid Finance Features
With borrowing limits that start as low as $75,000, it means even small businesses and property developers are able to access funding in an industry where barriers to entry are usually much higher. Rapid Finance only asks that businesses have been operating for at least two years in order to apply and no other eligibility criteria are disclosed, which opens up the application process to a much wider group.
While the platform doesn’t disclose interest rates before you apply, your credit score won’t face a hard check if you submit an application and see what you might be offered. Plus, the open application process means there’s a good chance you could be approved if you’ve been rejected elsewhere.
Lendio is a loan marketplace that was founded in 2011. It has around 75 partner lenders to choose from which gives borrowers a wide range of different rates and terms. The platform claims to be able to find loans for around 65% of applicants and all are welcome to apply.
- A large pool of partner lenders
- Applications are open to all
- Very low starting rates
- Generous borrowing limits
- Additional documentation may be required
- Loans can take up to 45 days to arrange
Lendio has incredibly low starting rates on its commercial real estate loans and there are no minimum eligibility criteria disclosed. You won’t receive a hard pull to your credit rating for taking a look at options, so it’s definitely worth seeing what you could get.
Lendio is tough to beat when it comes to real estate lending. The $5 million borrowing limit should be more than enough for the needs of any small business and the lenient eligibility criteria means there’s a good chance you could be accepted.
GoKapital is both a direct lender and a loan marketplace; in certain circumstances, you may be funded using a combination of lenders. This usually means rates are pretty low. What’s more, the platform has no minimum credit requirements and any small business may apply.
- Huge borrowing limits
- No minimum credit requirements
- Low rates
- High application approval rates
- Approval times aren’t given
- GoKapital may not be funding your loan
The first thing you’ll notice here is the incredibly generous $50 million borrowing limit. While it’s extremely unlikely most small businesses will need this much, it certainly opens up your options. In addition, rates start at an impressive 6% and terms can extend to 30 years.
GoKapital offers a very attractive all-around package for commercial real estate loans. Coupled with no credit score limitations and a 95% approval rate and it starts to look like a no-brainer decision.
Credibly offers commercial real estate financing of up to $10 million via its own loans and those provided through its partners. Credibly is a solid option, even if your credit is not up to scratch, however, you could be limited to smaller sums.
- Minimum personal credit score requirement of just 560
- Discounts for early repayment
- Fast and simple application process
- Informative and clear website
- Finances are suitable for the growth needs of a business
- At times rates may be expensive
- Some additional fees may be incurred
- A blanket lien is necessary
Credibly’s business expansion loan can help companies renovate or expand existing commercial real estate with funding of up to $250,000 over a period of 18-24 months. Interest rates are from 9.99% upward, and lenders need to pay a one-time origination fee of 2.5% of the entire loan. This may appear expensive in comparison to bank loans, however, Credibly’s funding is generally faster.
If you meet the criteria of a personal credit score of at least 600, $15,000+ average monthly revenue and three years or more in business Credibly’s commercial real estate financing options are a solid choice.
The Best Commercial Real Estate Loans for 2022
In the table below we’ve pulled together some of the best commercial real estate lenders. You’ll find a good mix of rates, terms, and borrowing limits and we’ve tried to ensure the providers cover a wide range of different eligibility requirements so no business is left out.
Fora financial review
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
- The application process is speedy and online.
- To apply with Fora Financial you must show your driver’s license, your business’s three most recent bank statements, proof of business ownership and a voided check.
Rapid Finance review
$75,000 - $2 million
Minimum of two years in business
Applications are left fairly open and all types of small businesses are encouraged to apply
$250,000 - $5 million
Starting from 4.25%
The application process is pretty straightforward and the average time for funding is around 45 days
$150,000 - $50 million
Starting from 6%
All credit scores accepted
At least four months in business
All businesses may apply here and the process is simple. However, funding times aren’t disclosed
Up to $250,000
Start at 9.99%
- Personal credit score of 600 or more
- $15,000+ average monthly revenue (as well as $3,000+ in average daily bank balances)
- Over three years in business
- Credibly is a suitable option even if your credit is not perfect.
- Credibly offer approvals within 24 hours and the potential of same-day funding.