Commercial Loan Comparison Tool
Compare bank, SBA, bridge, private debt, and conventional CRE loan options side by side.
Use this free calculator from CapitalAx Commercial Lending to analyze your commercial financing scenario. For personalized guidance on your specific deal, request a quote or call our team.
The Five Main Commercial Loan Categories
Most commercial financing falls into five buckets. Bank loans generally offer the most competitive rates for stabilized properties and strong borrowers, at the cost of stricter underwriting and slower closings. SBA loans serve owner-occupied properties and business acquisitions with low down payments and long terms. Bridge loans fund value-add and transitional deals on speed. Private and hard money lenders underwrite the asset more than the borrower, which helps when credit or documentation is a problem. Conventional CRE loans cover stabilized income property with proven cash flow.
How the Categories Generally Compare
Pricing and leverage trade off against speed and flexibility. Bank and SBA programs generally carry the lowest rates, with SBA leverage reaching 80 to 90 percent for owner-occupied real estate. Bridge programs generally price several points higher but can close in two to four weeks and lend against the stabilized value. Private money is generally the fastest and most expensive, and it usually requires a clear exit strategy. Conventional CRE sits in the middle on most dimensions.
How to Choose
Start with the questions that eliminate categories. If you occupy the property for your own business, SBA is usually the first program to price. If the property is not stabilized or you need to close fast, bridge financing generally fits better than anything conventional. If credit is challenged, private lenders focus on the asset and the exit rather than the borrower's history. For stabilized investment property held long term, bank and conventional CRE loans generally compete for the best terms.
What Borrowers Often Overlook
Rate is not everything. Prepayment penalties, recourse requirements, reserve requirements, rate adjustment mechanics, and closing timelines can all significantly change the total cost and flexibility of a loan. A slightly higher rate with flexible prepayment can beat a lower rate with a rigid penalty structure when the plan involves selling or refinancing early. Comparing full term sheets rather than headline rates is the discipline that separates a good financing outcome from an expensive one.
Frequently Asked Questions
What types of commercial loans should I compare?
The five main categories are bank loans, SBA loans, bridge loans, private or hard money, and conventional CRE loans. Each trades off rate, leverage, speed, and flexibility differently, and most deals have more than one viable path.
Which commercial loan has the lowest rate?
Bank and SBA programs generally carry the lowest rates for qualified borrowers, with conventional CRE loans close behind. Bridge and private money price several points higher in exchange for speed and flexible underwriting. Exact pricing depends on the deal, the borrower, and market conditions.
When does a bridge loan make more sense than a bank loan?
When the property is not yet stabilized, when the timeline is too short for bank underwriting, or when the deal needs renovation before it can support conventional debt. Bridge lenders underwrite to the stabilized value and generally close in two to four weeks, then the borrower refinances into permanent debt.
Is an SBA loan better for owner-occupied property?
Generally yes. SBA programs are designed for owner-occupants and typically offer lower down payments, with leverage reaching 80 to 90 percent, and longer fully amortizing terms than conventional alternatives. The tradeoffs are additional paperwork and a longer closing timeline.
What should I look at besides the interest rate?
Prepayment penalties, recourse and personal guarantee requirements, reserve requirements, how and when the rate adjusts, amortization versus term structure, and closing timeline. These factors can change the true cost of a loan more than a small difference in rate.
Can I qualify for a commercial loan with challenged credit?
Often yes, through private or asset-based lenders that weigh the property and the exit strategy more heavily than the borrower's credit history. Expect higher pricing and lower leverage, and plan a path to refinance into cheaper debt as the credit profile improves.