What You Usually Need for a Commercial Loan

🏢 What You Usually Need for a Commercial Loan

1. Personal Information

• Government-issued ID
• Social Security number
• Personal financial statement
• Personal tax returns, typically 2–3 years
• Resume or business experience, depending on the loan

2. Business Information

• Business name and legal entity documents
• Articles of Incorporation/Organization
• Business license
• EIN
• Business tax returns, typically 2–3 years
• Year-to-date Profit & Loss statement
• Balance sheet
• Business bank statements

3. Property Information
If you’re purchasing commercial real estate, the lender may request:

• Purchase agreement
• Property address and description
• Current rent roll
• Existing leases
• Operating statements
• Property tax information
• Insurance information
• Appraisal
• Environmental report, depending on the property and loan
• Title information

4. Financial Information
The lender will want to understand:

• Your income and cash flow
• Existing debts and obligations
• Available cash
• Down payment
• Cash reserves
• Other assets
• Existing commercial properties and loans

5. Credit
The lender may review:

• Personal credit
• Business credit
• Existing loans
• Payment history
• Outstanding debts

💰 One of the Biggest Things: DSCR

For an income-producing property, the lender will pay close attention to the Debt Service Coverage Ratio (DSCR).

In simple terms:

Property Income ÷ Property Debt Payments = DSCR

The lender wants to see that the property’s income is sufficient to cover the proposed loan payments.

🏦 The type of commercial loan matters

Requirements can be quite different for:

• 🏬 Retail property
• 🏢 Office building
• 🏭 Industrial/warehouse
• 🏘️ Multifamily property
• 🏨 Hotel
• 🍽️ Restaurant
• 🏗️ Construction/development
• 🏠 Mixed-use property
• 💼 Business acquisition

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