How Many Types of Business Loan Financing Are There — Including Real Estate — and Which One Is Right for You?

If you’re a business owner, entrepreneur, or investor, financing can be the key to unlocking your next big opportunity. But with so many different types of business loan financing options available — including those for commercial real estate — how do you know which one fits your goals?

At Commercial Partners of Texas, we specialize in structuring the right loan solutions tailored to your needs. Let’s break down the major categories of business financing and help you identify the best match for your situation.

1. Term Loans

Best for: Long-term investments, working capital, equipment purchases

Overview: This is the most traditional form of financing. You borrow a lump sum and repay it over a fixed period with interest. These can come from banks, credit unions, or online lenders.

Pros:

• Predictable payments

• Larger amounts available

• Good for established businesses

2. Lines of Credit

Best for: Ongoing cash flow needs, inventory purchases

Overview: Like a credit card for your business, a line of credit offers flexible access to funds up to a set limit. You only pay interest on the amount you use.

Pros:

• Flexibility

• Reusable credit

• Great for managing seasonal fluctuations

3. SBA Loans (Small Business Administration)

Best for: Startups and growing businesses with solid financials

Overview: SBA loans are partially guaranteed by the U.S. government, which lowers the lender’s risk and often means more favorable terms for you.

Common SBA programs:

• 7(a) Loans – General-purpose, flexible

• 504 Loans – Specifically for real estate and equipment

• Microloans – Smaller amounts for startups or underserved markets

Pros:

• Low interest rates

• Long repayment terms

• Government backing

4. Commercial Real Estate Loans

Best for: Purchasing, refinancing, or renovating commercial property

Overview: These loans are used to buy income-producing real estate like office buildings, warehouses, retail centers, or multifamily properties.

Types of real estate financing:

• Bank and Life Insurance Company Loans

• CMBS (Commercial Mortgage-Backed Securities)

• Bridge Loans – Short-term, for time-sensitive acquisitions or rehab

• Hard Money Loans – Asset-based, fast-closing, higher rates.

Pros:

• Builds long-term equity

• Potential rental income

• Tax advantages

5. Equipment Financing

Best for: Buying machinery, vehicles, or tech systems

Overview: The equipment you’re buying serves as the collateral. This loan helps you preserve cash flow while getting the tools you need.

Pros:

• Keeps your cash intact

• Fast approval

• Often includes 100% financing

6. Accounts Receivable / Invoice Financing

Best for: Businesses with slow-paying customers

Overview: Turn unpaid invoices into cash by borrowing against your receivables or selling them at a discount.

Pros:

• Immediate cash

• No need for traditional credit approval

• Great for B2B companies

  
  

7. Merchant Cash Advances (MCAs)

Best for: Retail or e-commerce businesses with daily credit card sales

Overview: You receive a lump sum in exchange for a portion of your future sales. Fast but typically expensive.

Pros:

• Fast funding

• No collateral needed

• Credit score not heavily weighted

Cons:

• High effective interest rates

• Frequent repayments can hurt cash flow

  
  

So, Which Loan Is Right for You?

Choosing the right type of financing depends on:

✅ Your business type✅ The amount you need✅ How quickly you need the funds✅ Whether you’re buying real estate, inventory, or equipment✅ Your creditworthiness and financial history.

Need Help Deciding?

At Commercial Partners of Texas, we work with a nationwide network of lenders — including banks, private lenders, SBA-approved partners, and life insurance companies — to match you with the right financing option. Whether you're buying a commercial building, funding a business expansion, or just need working capital, we can help guide you through the process from start to closing.

👉 Call us today at 832-607-1113 or email george@amerimort.com to discuss your financing needs.

Or visit: www.amerimort.com