A typical commercial loan term usually ranges between 5 to 20 years, but it depends on the type of loan and property:
- Short-term loans: 1–5 years, often used for construction or bridge financing.
- Standard commercial real estate loans: 10–20 years, sometimes with a balloon payment at the end.
- Equipment or business loans: 3–10 years, depending on the asset life.
Interest-only periods are also common at the start, which can make the initial payments lower than a fully amortized schedule.
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