Commercial loans are loans issued by commercial lending institutions to fund secured and/or unsecured debt. A commercial mortgage is a mortgage loan made using commercial real estate as collateral to secure repayment.

CLD's Financing Programs:
Small commercial loans - commercial financing ($1-$5 Million)
Mid-balance loans - commercial financing ($5-$25 Million)
Large balance loans - commercial financing ($25-No Max)
CLD's preferred collateral type includes; office, retail, industrial, hospital & healthcare, self storage, church, hotel and mixed use. Furthermore, CLD can offer conduit commercial mortgages through its CMBS trading desk.

A commercial mortgage is similar to a residential mortgage, except the collateral is a commercial building or other business real estate, not residential property. In addition, commercial mortgages are typically taken on by businesses instead of individual borrowers. The borrower may be a partnership, incorporated business, or limited company, so assessment of the creditworthiness of the business can be more complicated than is the case with residential mortgages.

Some commercial mortgages are nonrecourse, that is, that in the event of default in repayment, the creditor can only seize the collateral, but has no further claim against the borrower for any remaining deficiency. The general reason for this is twofold: many laws significantly prevent the creditor from going after the borrower for any deficiency, and mortgages structured for sale as bonds give a higher priority to constantly receiving some sort of income and therefore require a clause which allows the lender to take the property immediately, regardless of bankruptcy proceedings that the borrower might be going through.

Frequently, the mortgage is supplemented by a general obligation of the borrower or a personal guarantee from the owner(s), which makes the debt payable in full even if foreclosure on the mortgaged collateral does not satisfy the outstanding balance.

Lear more about our Commercial Loans

A secured loan is a loan in which the borrower pledges some asset (e.g. equipment or commercial real estate property) as collateral. A commercial mortgage loan is a very common type of debt instrument used by many individuals and businesses to purchase commercial real estate. In this arrangement, the money is used to acquire the property. The financial institution, however, is given security in the form of a lien on the title to the commercial property until the mortgage is paid off in full.

The majority of the commercial loans offered by our company are for the acquisition or refinance of commercial real estate. CLD can also provide Acquisition & Development Lending aka commercial construction loans, these loans are intended to acquire commercial property and develop it.

Construction loans are used to construct buildings or make improvements to property with the land improvements and other tangible assets used as collateral. Commercial lenders & banks usually open reserve accounts to facilitate the payments for the loan while the construction period is taking place.

Asset based financing & factoring. An Asset Based Loan is utilized by commercial lenders to issue debt secured by an asset these can be equipment loans or factoring (secured by accounts receivable).

Bridge loans. The bridge or mini-perm loan is used for a brief period of time (usually 6-36 months) until permanent financing is secured. Bridge loans allow borrowers to execute quickly on the purchasing of a commercial property; this is the financial instrument of choice when acquiring buy outs, foreclosures, REO, and non-stabilized commercial properties.

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Government Commercial Loans US businesses can take advantage of well priced loans with flexible guidelines by obtaining a government sponsored loan. The most common are (SBA-504 and SBA 7-a) and USDA. These products are more popular than ever due to the fact that in case of default the lender gets a percentage of the loss guaranteed by the US government.

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Unsecured loans are monetary lending instruments that are not secured against the Borrower's assets. These may be available from financial institutions under many different guidelines or marketing packages: credit card debt, business loans, bank overdrafts, credit facilities or lines of credit and corporate bonds (may be secured or unsecured).

The interest rates applicable to these different forms may vary depending on the lender and the borrower. Interest rates on unsecured loans are nearly always higher than for secured loans, because an unsecured lender's options for recourse against the borrower in the event of default are usually severely limited.

CLD offers commercial mortgage real estate financing nationwide. In order to simplify the commercial lending process we have divided our financing programs in three sections: Small, Mid, and Large commercial mortgage loan transactions.

Learn more about our unsecured commercial loans