Commercial Refinance & Cash-Out

Objective, unbiased guidance to evaluate different refinance options, understand costs, compare structures, and optimize timing effectively.

Flexible financing solutions for complex commercial properties across the USA and Canada—structured to address occupancy, valuation, and property-specific risk factors.

What Is Commercial Refinancing?

Commercial refinancing involves replacing an existing commercial loan with a new one. Borrowers refinance for several strategic reasons, typically falling into three categories:

Rate/Payment Optimization: Reduce monthly payments or stabilize interest rate structure

Term Restructuring: Extend amortization, adjust maturity, or reduce balloon risk

Equity Strategy: Access property equity through cash-out to fund growth or investment

Because commercial loans often differ from residential mortgages (shorter terms, prepayment provisions, and unique structures), refinancing is both a financial and risk-management decision.

What Is a Cash-Out Refinance?

A cash-out refinance occurs when the new loan exceeds the current payoff, and the borrower receives the
difference as cash (after closing costs).

Renovations or capital improvements

Business expansion or working capital (lender-dependent)

Acquiring additional properties or equipment

Debt consolidation (commercial/business debt)

Partner buyouts or ownership restructuring

Funding strategic investments or growth opportunities

Important Note: Cash-out approval depends on property value, cash flow, lender guidelines, seasoning
requirements, and borrower profile. It is not guaranteed.

Practical Decision Framework

A practical decision framework helps borrowers choose between standard refinance or cash-out based on financial goals.

Standard Refinance Goals:

Cash-Out Refinance Goals:

Why Borrowers Refinance Commercial Property

Borrowers refinance commercial property to improve cash flow, reduce risk, access equity, and optimize loan terms.

1.

Rate Reset or Payment Shock

Shields from variable-rate hikes, balloon payments, and loan maturities.

2.

Improved Property Performance

Leverages higher NOI or occupancy to obtain better loan terms.

3.

Debt Restructuring

Consolidates multiple loans, simplifying repayment and improving cash flow.

4.

Capital Access

Provides funds for renovations, expansion, or strategic property investments.

5.

Financial Planning

Reduces risk, stabilizes loan terms, and frees property equity.

How the Process Works

STEP 1

Initial Review

Assess the property, financial statements, and borrower goals to determine suitable refinancing strategies.

STEP 2

Loan Options

Identify appropriate standard refinance or cash-out structures that best meet the borrower’s objectives.

STEP 3

Documentation

Prepare detailed rent rolls, financial statements, and borrower profiles required for lender evaluation.

STEP 4

Lender Matching

Connect borrowers with lenders offering optimal terms, rates, and structures for the property type.

STEP 5

Underwriting & Approval

Lenders thoroughly review property, financials, and borrower profile to finalize loan terms and approval.

STEP 6

Closing

Execute loan documents, fund the refinancing, and complete the transaction efficiently and securely.