Glossary of Business Credit Terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Commercial Real Estate Loan

What Is Commercial Real Estate Loan?

A commercial real estate loan is a type of mortgage loan acquired by someone on a commercial property. The commercial property can be any real estate that produces income and is used for business purposes alone. Retail centers, hotels, and office complexes are examples of such real estate.

How Does Commercial Real Estate Loan Work?

One can approach, banks, independent lenders and insurance companies for commercial real estate loans. Every lender has a different estimate of risk they are undertaking, and thus their terms differ.

A repayment period of five to twenty years is offered for these loans. The amortization period lasts longer compared to the loan term.

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