A commercial construction loan is a type of construction loan for commercial properties that requires only interest payments during the construction phase and then fully amortizing payment ( interest and principal) when the project is complete. This gives you time to save or figure out a permanent financing option, if the loan provided is not construction-to-permanent. Commercial construction loans can be used for ground up construction or rehabilitation/renovation purposes.

How To Get a Commercial Construction Loan?

Commercial real estate lenders vary in what interest rates and terms they offer on construction loans. Simple Commercial Capital can help get you the best rate, term and loan-to-cost (LTC) for your project. In addition to the usual documentation that is required for a loan, you will also need to provide the construction budget, detailed scope of the work being done, and an exit strategy (how the construction loan will be paid off once construction is complete). An added bonus to getting your loan approved is to have tenants lined up. This tells lenders that once the project is complete your business will start to see some revenue right away.