This type of commercial finance is often recommended for business owners who want to purchase commercial real estate properties that will be used for business purposes such as rental apartments, hotels, office complexes, and retail centers. Taking out a commercial real estate loan will help you acquire, develop, and construct business properties.
While residential property loans are offered to individual borrowers, commercial real estate finance are offered to business organizations such as trusts, funds, partnerships, developers, or corporation who are allowed to acquire and develop business properties.
The commercial loan terms usually range from three to 20 years, while the amortization period can be longer than the loan term. For example, a lender may offer a commercial real estate finance for seven years with an amortization period of 30 years.