For a commercial loan, the deposit—or down payment—is usually higher than for a residential mortgage. Most lenders expect:
- Standard commercial loans: 20%–30% of the property’s purchase price.
- Stronger borrowers or smaller properties: Sometimes as low as 15%, but this is less common.
- Riskier properties or weaker credit: Could require 35%–50% down.
Other things to note:
- Lenders also consider your business’s financials, credit history, and the property type.
- Some programs, like SBA 504 or SBA 7(a) loans, can reduce your down payment to 10%–20% for eligible borrowers.
Read about: Are commercial loans harder to get?