Small Business loans for Real Estate

Many small businesses own the property and building upon which their business is located. Warehouses, factories, hardware stores, car rentals, and even restaurants or dry cleaners where often the proprietors live above their businesses.

Tens of thousands of American businesses are operating businesses that instead of paying commercial rent to a landlord, they pay a mortgage for the commercial property. As with most residential mortgages, commercial property loans have offset accounts where cash bank balances from the business account can offset the interest payments for the property loans. At the same time, these offset accounts are sometimes used to redraw from to provide cash flow to the business. In these situations, commercial property loan interest rates will differ from working capital loans which may be a better financing option.  

United Capital Source has experience with businesses which own their real estate and can advise on the best small business loans compared to commercial property loans with offset facilities.

In certain situations, small businesses can own real estate in their personal names or jointly with spouses or partners, yet the business shareholdings are different. This can result in different loans being held for both personal and business reasons – which can often lead to higher interest rates being paid across separate loan structures unnecessarily.

United Capital Source has experience in structuring small busines loans for real estate. For example, one of United Capital Source happy customers operates a seasonal restaurant that opens in the summer and fall for 4-5 months a year. Our client was paying an annual interest rate on her real estate payments, which United Capital Source restructured to reduce monthly payments – smoothing out cash flow and lowering the interest payments each month when the restaurant was closed.

Call us today on 855.933.8638 or email us at and discuss small business loans for businesses with real estate.