The type of commercial real estate loan that you get – We cover each type of lender in more detail in the next section. The size and term of the loan – Larger, longer-term loans generally have higher rates. The exception is hard money lenders, which charge high rates for short-term financing because they work with lower credit borrowers.
Commercial real estate loans are made to business against owned real estate. There are land and construction loans as well as property development finance. Commercial property loans tend to have more severe criteria compared to residential loans due to having a direct impact on the economy and financial status of company.