Getting commercial real estate loans with low credit might seem difficult, but it’s not impossible. Many lenders are willing to help borrowers who don’t have a perfect credit score. The key is knowing where to apply and how to prepare.

If you’re an investor, small business owner, or entrepreneur looking to buy commercial property, you need financing. Traditional banks can be strict with credit requirements, but there are private lenders and alternative financing options that offer faster and easier loan approvals. In this guide, we’ll show you the quickest ways to get a commercial loan, even if your credit is less than perfect.

How Do Commercial Real Estate Loans Work?

Commercial real estate loans help businesses purchase, refinance, or renovate income-generating properties. These include office buildings, retail spaces, apartment complexes, and industrial facilities. Unlike residential loans, these loans often have different qualification criteria, repayment terms, and interest rates.

Key Features of Commercial Loans:

• Loan Terms: Typically range from 5 to 25 years.

• Interest Rates: Fixed or variable, depending on the lender.

• Down Payment: Usually 10% to 30% of the property value.

• Credit Score Impact: Higher scores get better rates, but lower scores can still qualify with alternative financing.

Steps to Get a Commercial Real Estate Loan Fast

Getting a commercial real estate loan quickly requires preparation and the right approach. Lenders have specific requirements, and delays often happen when borrowers lack key documents or apply with the wrong lender. If you need financing fast, follow these clear and effective steps to speed up approval and secure your loan without unnecessary setbacks.

Step 1: Assess Your Credit and Financial Standing

Before applying, take a close look at your credit score, business income, and overall financial health. Lenders use these factors to determine how quickly they can approve your loan.

Your credit score plays a major role in loan approval. If your score is high, you’ll have access to better rates and faster approvals. However, if your score is low, some lenders may hesitate or require additional verification, which slows down the process.

If your credit is not perfect, focus on improving it by:

• Paying down outstanding debts.

• Ensuring all bills and credit payments are made on time.

• Checking your credit report for errors and disputing inaccuracies.

Apart from credit, lenders also review your business financials, including bank statements, tax returns, and profit/loss reports. If your financials are well-organized and strong, your approval process will move faster.

Step 2: Gather Required Documents Before Applying

One of the biggest causes of loan approval delays is missing paperwork. Lenders need specific documents to assess your financial health, business performance, and the property you’re purchasing. Having everything ready before you apply can shave days or even weeks off the approval process.

Commonly required documents include:

• Personal & Business Credit Reports – Shows your repayment history.

• Tax Returns (Last 2-3 Years) – Verifies your income.

• Bank Statements (6-12 Months) – Shows cash flow and financial stability.

• Business Financial Statements – Includes profit & loss statements, balance sheets, and revenue details.

• Property Information – Details of the commercial property, including location, value, and income potential.

• Loan Purpose Explanation – A summary of why you need the loan and how you’ll use the funds.

By having these documents ready upfront, you can avoid back-and-forth communication and keep the loan process moving smoothly.

Step 3: Choose the Right Type of Loan

Not all commercial real estate loans are processed at the same speed. Traditional bank loans can take weeks or months for approval, while options like hard money loans or bridge loans can be approved in just days. If speed is your priority, consider fast-approval loans such as hard money loans, which are based on property value rather than credit score, or bridge loans for short-term financing. 

Private lenders and online lenders also offer quicker approvals with fewer requirements. Avoid traditional commercial mortgages if you need fast funding, as they often involve lengthy paperwork and approval processes.

Step 4: Find the Right Lender for Fast Approval

The right lender like Kenbry Commercial can significantly speed up the loan approval process. Traditional banks often have stricter requirements and longer processing times, while private lenders, online lenders, and credit unions tend to offer quicker approvals. Online lenders, in particular, use automated systems that can approve applications within 24 to 48 hours. Before choosing a lender, ensure they are known for fast approvals, minimal paperwork, and competitive interest rates.

Step 5: Submit a Strong and Complete Loan Application

A well-prepared loan application is essential for quick approval. Missing information or incomplete documents can delay the process. Ensure your application includes accurate details about your business, income, and property. Include all supporting documents, such as tax returns and financial statements, and clearly explain your loan's purpose and repayment plan.

Step 6: Be Responsive to the Lender’s Requests

After submitting your application, stay engaged throughout the process. Lenders may need additional information or clarifications, and delays in your response can slow things down. To avoid setbacks, monitor your email and phone regularly and promptly provide any requested documents. Quick responses help keep the approval process moving smoothly.

Step 7: Complete the Closing Process Quickly

Once approved, the final step is closing the deal. This involves signing agreements, confirming property details, and finalizing legal paperwork. The closing process may be delayed by property inspections or legal documentation issues. To avoid this, review all loan documents carefully and ensure that property-related requirements, like appraisals or title searches, are completed on time. Once completed, the funds will be disbursed, allowing you to proceed with your investment.

Best Commercial Real Estate Loan Options Available

When seeking commercial real estate loans, choosing the right option is key to securing the funding you need. Here are some of the best loan options available:

1. Small Business Administration (SBA) 504 Loans: 

SBA 504 loans are designed for small businesses looking to purchase real estate, with lower down payments (as low as 10%) and long repayment terms. The approval process is longer, but these loans are government-backed, reducing the lender’s risk.

2. Commercial Bridge Loans

Bridge loans provide short-term financing to bridge the gap between purchase and long-term funding. They come with higher interest rates but are a quick option when immediate funds are needed.

3. Hard Money Loans

Hard money loans are asset-based, and secured by the property itself. They are fast but come with high interest rates and short repayment terms, making them suitable for real estate investors and short-term projects.

4. Online Commercial Lenders

Online lenders offer fast approval and flexible terms for various loan products. While interest rates may be higher, their quick processing makes them ideal for businesses needing fast capital.

5. CMBS Loans (Commercial Mortgage-Backed Securities)

CMBS loans are used for large-scale properties like office buildings or shopping centers. They offer competitive rates and long terms but require a complex approval process.

Pro Tips for Speeding Up the Loan Approval Process

If you need a real estate loan quickly, use these strategies to get fast approval:

• Apply to Multiple Lenders: Don’t rely on one lender. Apply to several institutions to find the quickest option.

• Improve Your Debt-to-Income Ratio: Lenders look at your debt compared to your income. Paying off some debts can improve your chances.

• Provide Strong Collateral: Offering valuable collateral, such as another property or assets, can help secure funding faster.

• Show Consistent Cash Flow: Lenders prefer borrowers with a steady income. Show proof of your business’s ability to generate revenue.

Final Thoughts

Getting commercial real estate loans fast is possible when you’re well-prepared and choose the right loan and lender. By checking your finances, gathering documents early, and working with lenders who offer quick approvals, you can reduce delays and secure funding faster.

If you follow these proven steps, you’ll increase your chances of getting approved quickly. So, if you looking for a commercial loan with fast approval? Don’t let a low credit score hold you back! Explore your financing options at Kenbry Commercial today and connect with lenders who can help you secure funding. 

Start your application now and take the first step toward owning commercial property!

FAQs

1. Can I get a commercial real estate loan with a bad credit score?

Yes, some lenders offer financing options for borrowers with low credit. Hard money loans, bridge loans, and private lenders are good alternatives.

2. What is the minimum credit score required for a commercial loan?

Traditional banks prefer scores above 680, but private lenders may approve loans with scores as low as 500.

3. How long does it take to get a commercial real estate loan?

Approval times vary. Traditional banks may take weeks, while private lenders and hard money loans can be approved within days.

4. Do commercial loans require a down payment?

Most lenders require a down payment of 10% to 30%, depending on the loan type and borrower’s financial strength.

5. What are the best loan options for fast approval?

Hard money loans, bridge loans, and SBA loans are some of the best options for quick approval.