Commercial Real Estate Loans Built Around Your Business
The right property can play an important role in what comes next for your business.
Maybe you've outgrown your current location and are ready to purchase a larger building, you own commercial property and want to refinance existing debt, or you may be evaluating an income-producing property as your next investment.
Whatever brings you to the conversation, commercial real estate financing starts with understanding the property, the numbers, and what you're trying to accomplish.
First Western Bank works with Arkansas businesses and investors to finance commercial real estate for a variety of needs. Our commercial lenders take the time to understand the opportunity in front of you, answer your questions, and help you evaluate financing options based on your plans for the property.
What Are Commercial Real Estate Loans?
A commercial real estate loan provides financing for property that is used for business or investment purposes rather than as a personal residence.
That can include financing to purchase the building where your company operates, acquire an investment property, refinance commercial real estate you already own, or make improvements to an existing property.
Unlike a residential mortgage, a commercial real estate loan is evaluated in the context of the business or investment behind the property. Your lender will want to understand factors such as the property itself, how it will be used, your business finances, and your plans for repayment.
You don't need to know exactly which loan structure you need before talking with a lender. Bring us the opportunity you're considering, and we'll help you understand the financing questions that need to be answered.
Key Benefits
Commercial real estate deals don't all look the same. The financing for a business purchasing its first location may be very different from the financing needed by an experienced investor acquiring another income-producing property.
That's why the conversation matters.
A First Western commercial lender can look at the property alongside the needs of your business and explain the financing options that may be available.
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Local decision-making: Lending decisions made by people who understand Arkansas businesses and communities.
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A dedicated commercial lender: A consistent point of contact who can answer questions and help you through the lending process.
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Flexible term options: Financing structured around the property, loan purpose, and borrower qualifications.
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In-house servicing: The ability to continue working with First Western after your loan closes.
Loan Uses
Commercial real estate financing can support several different business and investment needs.
Purchase an Existing Property
If you're ready to move from leasing to owning, relocate your business, or purchase another location, a commercial real estate loan can help finance the acquisition.
Before you make an offer, or early in your search, it can be helpful to speak with a commercial lender about your plans. Understanding the financing side early gives you a better idea of what information you'll need as you evaluate properties.
Refinance Current Commercial Debt
There are several reasons a business owner may consider refinancing existing commercial real estate debt.
You may be approaching the maturity of an existing loan, reviewing your current financing terms, or looking for a loan structure that better fits the business today.
A First Western lender can review what you currently have and explain whether refinancing may make sense based on your circumstances.
Expand or Renovate a Property
Sometimes the right location is the one you already have.
If your business needs additional office space, a larger production area, updated customer-facing space, or other property improvements, commercial real estate financing may help you make those changes without purchasing a new property.
Talk with your lender about the scope of the project, expected costs, and how the improvements fit into your plans for the business.
Acquire Investment/Income-Producing Property
Commercial real estate loans may also be used to purchase properties intended to generate rental or other operating income.
Because these transactions are evaluated differently from owner-occupied properties, your lender will want to understand the property, expected income, expenses, existing or anticipated tenants, and your experience with commercial real estate.
Starting that conversation before you're deep into a transaction can help you understand what information will be important during the lending process.
How the Process Works
You don't need to walk into First Western with a completed loan package just to start a conversation.
1. Tell us about the property
Start by talking with a commercial lender about what you're considering.
Is this a property you're purchasing for your own business, an investment, a renovation, or a refinance?
If you've already identified a property, bring the information you have. If you're still exploring possibilities, your lender can explain what you'll need to consider from a financing perspective.
2. We'll review the details
Commercial real estate lending involves more than the purchase price of the property.
Your lender may need information about your business or investment, financial history, the property, existing debt, expected income, and other details relevant to the transaction.
The exact documentation depends on the borrower and the type of financing involved.
3. Understand your financing options
Once your lender understands the transaction, they can discuss the financing options that may be available and explain important details such as the proposed loan amount, term, rate structure, down payment or equity requirements, and other applicable terms.
This is also your opportunity to ask questions. If there's something you don't understand, we want you to ask.
4. Move toward closing
If you decide to move forward, your lender will guide you through the remaining requirements and steps toward closing.
FAQs
What property types qualify?
Commercial real estate financing may be available for a variety of owner-occupied and investment properties.
How long does approval take?
Commercial real estate loans aren't one-size-fits-all, so the timeline can depend on the property, financing request, documentation, appraisal or other third-party requirements, and complexity of the transaction.
If you're working toward a particular purchase or closing date, tell your lender early in the conversation. They can explain what will be needed and give you a better understanding of the expected process for your specific loan.
What's the difference between a commercial mortgage and a business loan?
A commercial mortgage is specifically secured by commercial real estate.
A business loan is a broader term that can describe financing for many different business purposes, such as purchasing equipment, providing working capital, funding an expansion, or acquiring a business.
If real estate is part of your plans but isn't the entire financing need, talk with a First Western commercial lender about the complete project. They can help determine which type of financing may be appropriate.
Do you require a down payment?
Commercial real estate financing often requires the borrower to contribute equity to the transaction, but the amount can vary based on the property, loan structure, borrower, and other factors.
Rather than assuming you need a particular percentage, talk with a First Western lender about the property you're considering. They can explain the requirements that would apply to your financing request.
Take the First Step Today
You don't have to wait until you've signed a purchase agreement or finalized every detail to start talking about financing.
In fact, if you're considering buying, refinancing, renovating, or investing in commercial property, an earlier conversation can help you understand what financing may look like before you make important decisions about the property.
Bring us what you know so far. A First Western commercial lender can ask the right questions, explain what information will be needed, and help you understand the next step.