Commercial Mortgage

For Small Businesses And Entrepreneurs: The Only Commercial Mortgage Product You’ll Ever Need

At Mercantile Capital Corporation we finance commercial property for business owners and entrepreneurs exclusively, and the theories that birthed Mercantile Capital Corporation differentiate us in three ways from bankers and other commercial lenders!

First, is the down payment amount. Ordinary bankers typically require anywhere from 20 to 30 percent of the purchase price of commercial property as a down payment, which is not the best capital utilization for a small business owner. It reduces the risk for the banker, but not for the business owner. We, on the other hand, require one-third to one-half that amount for a down payment. In other words, we finance up to a 90 percent loan-to-cost for most of our borrowers—and that’s a big distinction. I call it “equity savings,” which can now be reinvested in the business. And by doing so, you’ll probably get much higher cash-on-cash returns on that capital than what you could even in owning your commercial real estate.

The second differentiation between our kind of financing and regular bank financing is the length of the terms we offer. An ordinary bank gives much shorter terms because they want this risk—that’s how they view it—to get paid off more quickly, which means a fifteen- or twenty-year term instead of the twenty-five-year term that we offer. Yet those extra five or ten years make a dramatic impact on monthly cash flow for the business owner.

Third, we specialize in a very little-known commercial mortgage program that I believe is the best one out there. For years the banking community has done a disservice by not educating the small business community about this particular program. It is the least expensive capital that a business owner can find, and it happens to be the program that we specialize in.