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Commercial Mortgage Loans

Debt capital utilized to fund a commercial real estate transaction.

Lenders require a significant amount of information when making a determination regarding loans for commercial mortgages. Along with a comprehensive and well-organized application, these commercial mortgage loan providers typically require a detailed summary of the company's activities and corporate goals and a list of the major shareholders, owners and key employees within the organization. Financials for the most recent three years of operations are often necessary. Some lenders may require financial projections and a justification for the necessity of the new property as well. Lenders will also look at corporate credit histories and credit scores to identify any areas of concern. If the company is relatively new, the credit histories of owners and shareholders may be examined as well to determine the risk of default for the mortgage loan arrangement.

The collateral for commercial mortgage loans usually consists of the property to be purchased by the company. In some cases, additional security may be required; this is generally due to a poor credit history, a problem with the property's location or condition or unfavorable economic conditions in the commercial property market. The added collateral can be anything of value to both parties and may include real estate, jewelry, securities, vehicles or other items of significant financial worth. Loans for commercial mortgages are typically amortized over 20 or 30 years and may feature fixed-rate interest agreements or variable-rate interest over the life of the loan.

The CNF Exchange website provides corporate borrowers with access to the best lenders in the commercial mortgage loan marketplace. Businesses can submit their funding applications for free through the online interface and receive quotes for commercial mortgage loan agreements directly from lenders. Once a proposal has been evaluated and accepted by the borrower, CNF Exchange creates the connection between borrower and lender to provide unparalleled access to these lending arrangements for commercial borrowers in the competitive marketplace.