Commercial Loan

Commercial loans are typically divided into three categories:

1. Commercial property loans 

The purpose of a commercial property loan is for the initial purchase, refinance or cash out of commercial properties.

For these loans, the loan amount from most lenders generally ranges from 65% – 80% of the commercial property value. The interest rates are typically lower than other commercial loans.

2. Business loans

Business loans are divided into secured and unsecured categories.

A secured business loan, as its name suggests, is secured by the property. The loan amount must be used for the purpose of purchasing or operating the business. The loan amount can be up to 100% of the value of the security, subject to conditions from separate lenders.

Unsecured business loans are mainly based on business goodwill for capital loans. Common examples are franchise business loans, post offices, convenience stores etc.

3. Development loans

General development loans refer to loans for the development of three or more new constructions on one or more titles. The loan amount is typically based on either the estimated value of 65% of the completed project after development or 70% of the overall development costs. Different banks will have different requirements for this.

A bank’s approval for development loans is mainly based on the calculation of the effective pre-sale amount, any relevant developing experience, the feasibility of the project, the qualification and experience of the builder and so on.

We can not only provide developer construction loans from mainstream banks to developers, but we can also provide developer loans from private equity funds as an alternative solution. For further details, please contact our loan manager for a more specific breakdown.