How we make money: The Business Funding Club is a referral service, not a lender and not a broker. We refer businesses that ask for capital to ROK Financial. ROK and the lenders it matches you with make every funding decision. ROK pays us when a business we refer receives funding. It is free to you, and nothing here is an offer of credit. Read the full disclosure.

Illustration of a commercial flex building at dusk

Financing types

Owning the building turns rent into equity. The loan has to fit the business inside it.

Commercial real estate financing pays to buy, refinance or improve property used for business or to produce income: shops, offices, warehouses, mixed-use and multifamily buildings. The Business Funding Club refers you to ROK Financial. ROK and the lenders it matches you with review every request and make every funding decision.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.

By Marcus L. Barber, Publisher · Reviewed by Marcus before publishing · Updated · How we write and check facts

What it is

Commercial real estate lending covers acquisition, development and construction financing, and financing for income-producing property[1]. The property is the main collateral. Lenders weigh its value and condition along with either your business's cash flow, if you occupy it, or the rents, if you lease it out. Common forms include purchase loans, refinances, cash-out refinances and short-term bridge loans[2].

Where it fits

  • Buying the building you already work from, so rent becomes a payment on something you own.
  • Moving into a larger shop, warehouse, clinic or yard to take on work you've already won.
  • Refinancing an existing property loan, or taking cash out of equity to fund growth.
  • A bridge loan to buy a property before longer-term financing is in place.

When it’s the wrong tool

  • Short-term cash needs. Property loans involve appraisals, environmental reports and title work[2]. They are not a way to cover next week's payroll.
  • A building that doesn't fit the business. If you'll outgrow it soon, closing costs and prepayment terms can outweigh the equity you build.
  • Rental homes and renovation projects held as investments. See investment property loans.
  • Stretching to buy when the down payment would drain the cash your operations need.

Ask before you sign

  • What is the total cost over the life of the loan, including origination, appraisal, legal and closing costs?
  • Is the pricing fixed for the whole loan, or does it reset? When?
  • Is there a balloon payment, where a large balance comes due before the loan is fully paid down?
  • What prepayment penalty applies, and how is it figured?
  • How much do I need to put down, and what cash reserves does the lender require?
  • Is a personal guarantee required, and does the lender want liens on business assets beyond the property?
  • What happens if the property appraises below the purchase price?

Owner-occupied or income property

If your business will occupy the building, the lender looks closely at your business's cash flow, because that is what makes the payment. Two SBA programs can apply. 7(a) can be used to buy, refinance or improve real estate[3]. 504 can be used to buy, build or renovate buildings or land[4], and typically combines a private lender's loan, a loan from a Certified Development Company, and your equity[5]. See SBA loans.

If the property will be leased to others, the rents carry more weight than your business's books. The 504 program excludes speculation and investment in rental real estate[4], so income property usually means conventional commercial financing.

What lenders review

  • Property reports: appraisal, environmental reports, title search and zoning permits[2]
  • Your down payment, which depends on credit, debt-to-income, the loan program and the property type[2]
  • Business financial statements and tax returns, for owner-occupied property
  • Leases and a rent roll, for income property
  • The purchase contract, or the existing loan statement for a refinance

What ROK lists for this product

ROK describes commercial real estate financing as funding for properties used to produce income, and lists single family, multifamily, mixed use, office, retail, industrial and warehouse properties. Its listed products include purchase loans, standard and cash-out refinances, bridge loans and fix-and-flip loans[2]. ROK's general application lists at least 4 months in business and $10,000 or more in monthly gross sales ($120,000 a year)[6]. ROK and its lenders review every request and make every funding decision. The Club does not.

Get the numbers in writing

California's commercial financing disclosure law does not cover financing secured by real property[7]. Ask any property lender for the total dollar cost, the payment schedule, any balloon and the prepayment terms in writing before you sign.

Industries where it comes up

ROK Financial lists this product on its own site. Read ROK’s page

Common questions

Can I use an SBA loan to buy my building?

Often, yes, if your business will occupy it. Both 7(a) and 504 can finance real estate for an eligible business[3,4]. 504 is built for major fixed assets and can't be used for rental investment property[4]. Ask the lender how much of the building you need to occupy for the program you're considering.

What is a balloon payment?

A balloon is a large balance due at a set date before the loan would be paid off by its regular payments. It keeps payments lower along the way, but you'll need to refinance, sell or pay the balance when it comes due. Ask whether an offer has one, when it falls, and what happens if refinancing isn't available then.

Why does the lender want an environmental report?

Contamination can lower a property's value and bring cleanup costs, and the property is the lender's main collateral. Environmental reports are among the property documents ROK lists[2]. If your business or a past owner used fuels, solvents or chemicals on site, expect closer review.

What will ROK want to see?

Expect property documents such as an appraisal, environmental report, title search and zoning permits[2], plus business financial statements, tax returns, bank statements and the purchase contract. For income property, add leases and a rent roll. ROK and its lenders decide what they need.

Does it cost anything to apply through The Business Funding Club?

No. The Business Funding Club is a free referral club, not a lender or a broker. We refer your request to ROK Financial. ROK and the lenders it matches you with review it and make the decision. ROK pays Digital Solomon when a referred business is funded. You never pay the Club anything, and you don't have to accept any offer.

Sources

  1. Comptroller's Handbook: Commercial Real Estate Lending Office of the Comptroller of the Currency, checked October 16, 2026
  2. Commercial Real Estate Financing ROK Financial, checked October 16, 2026
  3. 7(a) loans U.S. Small Business Administration, checked October 16, 2026
  4. 504 loans U.S. Small Business Administration, checked October 16, 2026
  5. SBA lender resources: Partnering with SBA loan programs U.S. Small Business Administration, checked October 16, 2026
  6. Business Financing application (ROK Financial partner page) ROK Financial, checked October 16, 2026
  7. SB-1235 Commercial financing: disclosures (bill text) California Legislative Information, checked October 16, 2026

Before you start

What ROK looks for.

Stated plainly so you don’t spend time on a form that isn’t built for your business yet. These are the minimums ROK lists on its partner application. Meeting them is the starting line, not a decision.

  • 4 monthsminimum time in business
  • $10,000minimum monthly gross sales
  • U.S.based and operating

Credit history is one input among several. ROK reviews the whole picture: revenue, deposits, time in business, and what the money is for. What to have ready.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.