Business Credit Center

Commercial real estate financing for your business

Learn the different Business Real Estate Financing options and how to determine which is right for you.

Published: May 15, 2013
Updated: July 13, 2020

Wells Fargo Business Real Estate Financing offers up to $1 million1 in real estate secured loans and lines of credit designed for small business owners and commercial real estate investors.2

The Business Real Estate Financing products offer:

  • Financing with low closing costs
  • Competitive rates with fixed and Prime based adjustable options3
  • Wide variety of term options
  • No appraisal fee4
  • Rate lock without fees5

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 credit6 is good for ongoing expenses or working capital over a period of time.

Expenses 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.


1 Financing from $50,000 to $1 million on purchase and refinance loans in first lien position; $50,000 to $500,000 for lines of credit, equity loans, and refinance loans in second lien position. Maximum $500,000 for cash-out. All financing is subject to credit approval.

2 For loans that finance the purchase of investor property, cash-out on a refinance loan, and equity loans and equity lines of credit secured by owner-occupied property (cash-out is unavailable for investor property), the customer must be an established Wells Fargo business checking or savings account customer. An established Wells Fargo customer is a customer that has a Wells Fargo business checking or savings account that has been open as of February 15, 2020 or for a minimum of six months at the time of the applicable credit application. All accounts must be in good standing.

3 Based upon analysis of application, appraisal and origination fees, and interest rates for competing U.S. lenders as compiled by an independent third party research firm on a quarterly basis.

4 You will need to pay a deposit of up to $1,000 when accepting the conditional approval for any loan or line of credit. The deposit is nonrefundable if the loan or line of credit transaction does not close for any reason. However, if the loan or line of credit transaction does close, the deposit will be applied to any applicable fees due at closing, and if there is any unused portion of the deposit, it will be returned or credited to you after closing. For purchase loans, the customer will need to provide proof of funds for the required down payment. All financing is subject to credit approval.

5 Your rate locks upon receipt of a completed application and underwriting package. If your loan does not close within 90 days you may be subject to current rates.

6 Equity lines of credit are available only to established Wells Fargo business checking or savings account customers, and only for their owner-occupied property. An established Wells Fargo business checking or savings account customer is a customer that has a Wells Fargo business checking or savings account that has been open as of February 15, 2020 or for a minimum of six months at the time of the applicable credit application. All accounts must be in good standing.

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