Commercial Loans

Commercial loans provide the financing needed to buy, build, or refinance income-producing properties such as office buildings, retail spaces, warehouses, mixed-use developments, and multi-unit housing. These loans are structured differently from residential mortgages and are designed specifically for business owners, investors, and developers. If you’re looking to expand your real estate portfolio, generate rental income, or launch a new venture involving commercial property, the right commercial loan can give you the leverage and flexibility to move forward.

What Is a Commercial Loan?

Commercial loans are used to finance real estate that is primarily intended for business use rather than personal residence. This includes properties like apartment buildings with five or more units, retail storefronts, industrial spaces, office buildings, and even land for development. These loans are typically made to business entities (such as LLCs or corporations) rather than individuals and are based on the property’s income potential more than the borrower’s personal credit.

Unlike conventional home loans, commercial loans may involve shorter terms, balloon payments, and different underwriting requirements. They often require a more detailed financial analysis of the property, including rent rolls, operating expenses, and projected cash flow. Lisa Rioux works with borrowers to prepare for these requirements, helping you understand what lenders are looking for and how to structure your loan for approval.

Who Uses Commercial Financing?

Commercial loans are used by a wide range of clients—from small business owners buying their first storefront to experienced investors adding another multifamily property to their portfolio. If you’re purchasing a property that generates income or supports your business operations, there’s a good chance commercial financing is the right tool.

This type of loan is ideal for:

• Real estate investors purchasing multi-unit rental properties
• Entrepreneurs acquiring office, retail, or industrial space for their business
• Developers building or renovating commercial structures
• Buyers refinancing existing commercial properties to improve cash flow

Lisa works with both new and seasoned investors and understands the unique needs and goals that come with commercial projects. Whether it’s your first commercial property or your tenth, she’ll help guide the process and ensure your financing supports the broader vision.

Types of Commercial Properties You Can Finance

There’s a wide variety of property types that can be financed through commercial lending. Each comes with its own set of qualifications and risk assessments, but they all fall under the broader umbrella of income-generating or business-use real estate. Common commercial property types include:

• Multifamily: Buildings with five or more residential units
• Retail: Shopping centers, strip malls, standalone stores
• Office: Small office spaces or large complexes
• Industrial: Warehouses, distribution centers, manufacturing facilities
• Mixed-use: Properties that combine residential and commercial elements
• Hospitality: Small hotels, motels, or boutique lodging

Each property type has its own lender expectations and market considerations. Lisa helps break down the details, prepare the necessary documentation, and connect you with lenders who understand your specific property class.

How Commercial Loans Are Structured

Commercial loans come with several key differences compared to residential loans. Most notably, they often feature shorter terms—commonly 5, 7, or 10 years—with amortization periods of 20 to 30 years. At the end of the term, a balloon payment is usually required unless you refinance or sell the property.

Interest rates on commercial loans can be fixed or variable and are typically higher than residential rates due to increased risk. Down payment requirements are also steeper, often ranging from 20% to 35% of the purchase price. Lenders will review the property’s loan-to-value ratio (LTV) and debt service coverage ratio (DSCR) to determine whether the expected income can support the loan.

DSCR is a key metric—generally, lenders look for a DSCR of at least 1.20, meaning the property generates 20% more income than the debt obligation. If your property meets or exceeds this standard, you’re more likely to qualify for favorable terms. Lisa helps you calculate and present these figures to lenders so your application is strong and clearly structured.

What Lenders Look For in Commercial Deals

Commercial lenders focus heavily on the income-generating potential of the property. They’ll review current lease agreements, tenant histories, maintenance costs, local market conditions, and your experience as an investor or business owner. While personal credit and financials may still be reviewed, they carry less weight than they would in a residential loan.

Lenders also prefer properties in stable or growing markets with demand for the type of use you’re proposing. Lisa helps you prepare market summaries, project plans, and property documentation to support your loan application and present the investment in the best possible light.

For owner-occupied commercial properties, lenders will also assess your business’s cash flow and operational stability. Having clean books, a clear business plan, and a solid history of performance helps you qualify and secure better rates. Lisa works with clients to align personal and business financials with lender expectations, smoothing the path to approval.

Why Work with a Commercial Loan Advisor?

Commercial real estate financing is complex. The terms, structures, and documentation are different from what most people experience in residential lending. Having someone in your corner who understands the ins and outs—and who takes the time to personally handle your application—can make a big difference in both speed and outcome.

Lisa Rioux brings transparency, experience, and a deep network of commercial lenders to every deal. She doesn’t just submit your file and wait—she actively guides it through underwriting, negotiates favorable terms, and makes sure the loan you’re getting fits your overall investment strategy. With Lisa, you’ll never feel like you’re figuring it out alone.