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Commercial Purchase Loans

The path to finding the right loan for you starts here. To discover how our loan programs can help you, book a consultation with us.

What is a commercial purchase loan?

  • For a variety of reasons, it might make sense for a company to own real estate instead of leasing it from a third party.
  • A commercial purchase loan enables the company to do just that.
  • It allows the company to finance the purchase of commercial real estate (buildings, warehouses, storefronts, office complexes, land, etc.).
  • The terms of an owner-occupied commercial loan depend on the profitability and cash flow of the business, as well as the personal financial strength of the business owners (if they will be guaranteeing the loan, i.e., a “recourse loan”).

Success Stories (Commercial Purchase Loans)

Sample commercial purchase loan programs

Loan amount: We have access to programs that offer loan amounts in all ranges:

  • Small balance amounts are generally $200,000 to $2.5 million.
  • Higher balance amounts can range upward to $50 million or more.

Loan-to-value ratio (LTV):

  • Typical LTVs can range up to 80%.

Debt-service coverage ratio (DSCR) or debt-coverage ratio (DCR):

  • Usually, lenders like to see a DSCR of at least 1.15 (meaning the company must generate enough cash flow to cover its operating expenses plus an additional 15% more to cover its debt payments).
  • However, some lenders are willing to consider a minimum DSCR of 1.0.

Credit score:

  • While the company’s credit score will be analyzed, some lenders also analyze the individual credit score of the business owner(s) and typically require a minimum FICO score of 600 or even 550.  (For more about credit scores of companies, click here.)


  • Typical loan terms are 3, 5, 7, and 10 years, all with a fixed interest rate throughout the entire term.
  • Some lenders offer 20-, 25-, 30-year amortizations.
  • Note: On a case-by-case basis, we may be able to tailor the term to less traditional increments of 8 years, for example.

Eligible property types:

  • We have programs for traditional commercial property types (multifamily (5 units or more), office, warehouse, light industrial, retail, bars, restaurants, automotive, self-storage, day care centers, and mobile home parks).
  • We also have programs for less traditional property types (hospitality, assisted living, gas stations, rural, and cannabis).

Creative ways to qualify:

  • Some lenders will allow business owners to prove their income by providing 12 or 24 consecutive months of business bank statements instead of tax returns.
  • Some lenders will look solely to the value of the property and do an asset-based loan – no minimum DSCR required.

All items are subject to change. Call David A. Krebs at 321-239-2781, click here to submit a message, or click here to book a call.

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