Commercial Real Estate Loans »

Commercial real estate financing is a generic term used to describe a variety of different financing alternatives used to purchase or refinance commercial real estate. Commercial mortgage financing may include commercial real estate loans from traditional commercial real estate lenders or an equity purchase from a capital fund specializing in purchasing and refinancing commercial real estate. Almost all businesses or individuals purchasing commercial real estate will seek commercial real estate financing either at the time of purchase of the commercial real estate or at some later point in time as part of a refinancing. There is an entire industry of individuals and businesses focused on offering commercial real estate financing or helping borrowers secure such business loans.

Commercial real estate financing is distinct from general commercial financing in that it is exclusively used to purchase or refinance commercial real estate. Commercial financing can include commercial property financing of real estate, but also includes numerous other types of commercial financing, such as commercial truck financing or other commercial equipment financing. The common factor in most of these forms of financing is that in the case of loans, these loans are invariably secured by whatever asset the loan amount is used to purchase. Assuming the asset in question holds some value over time commensurate with the loan repayment schedule, this securitization reduces the lender's risk of default and total loss.