by
Senior Vice President of Business Real Estate Financing at Wells Fargo

Wells Fargo Business Real Estate Financing offers up to $1 million in real estate secured loans and lines of credit designed for small business owners and commercial real estate investors.

The Business Real Estate Financing products offer:

  • Financing with low closing costs
  • Competitive rates with fixed and Prime based adjustable options
  • Wide variety of term options
  • No appraisal fee
  • Rate lock without fees

The funds can be used to purchase or refinance commercial property, refinance an existing loan, or to access equity on owner-occupied commercial property for a variety of business needs. A variety of both owner-occupied and investor commercial properties can be used to secure the financing, such as retail, office, warehouse, light industrial, mixed use, and multi-family residential with five or more units, to name a few.

There are several Business Real Estate Financing options available. To find a solution that may be right for your business, it's important to understand the differences among the options.

Purchase loans vs. refinance loans

Purchase loans are designed for business owners and real estate investors looking to buy commercial property. If you already own your business property, a refinance loan may help you take advantage of today's interest rates, which may be lower than what you have now. A key benefit of Wells Fargo Business Real Estate Financing loans is that there are no origination fees or lender closing costs which sets us apart from our top National competitors. 

Equity loans vs. lines of credit

Other options for owner-occupied commercial property owners include equity loans and lines of credit. An equity loan offers a one-time distribution, so it’s ideal for large business expenses, while a line of credit is good for ongoing expenses or working capital over a period of time.

Expenses tend to come up all the time whether you’re making property improvements, expanding your business, or managing inventory. One key to success is having the cash flow to finance business goals, take advantage of opportunities for growth, and cover unforeseen costs.

An equity loan offers a lump-sum distribution and requires repayments on a fixed schedule. For instance, if you need funds for a one-time expense, such as a parking lot resurfacing, an equity loan may make the most sense. 

An equity line of credit offers revolving access to capital giving the borrowers the flexibility to take out money as needed and repay it as their business allows. If you need to fund routine or seasonal expenses, like purchasing additional inventory, consider an equity line of credit.

Getting approved

When you apply for financing secured by commercial real estate, lenders traditionally look at key criteria such as:

  • Your business and personal credit ratings, which can indicate how you have handled your credit obligations in the past.
  • Cash flow and the capital you have invested in the company.
  • The appraised value of the property used to secure the financing to determine its current market value.
  • Internal and external economic factors, which are considered to understand the effect they have on the ability of a business to repay a loan, as well as the intended use of a loan.

There are a variety of Business Real Estate Financing options available. Work with your banker to identify the one that best aligns with your specific situations.