Borrowing money for a commercial property is a big decision. Private lenders offer different types of financing, but picking the right loan term is key. Some loans last a few months, while others stretch for years. So, which one makes sense for you?

If you’re searching for commercial property loans in Dallas, knowing how short-term and long-term loans work can save you money and stress. Let’s break it down.

What Is a Short-Term Commercial Property Loan?

Short-term loans usually last between six months and three years. They work best for investors and business owners who need quick cash. These loans help buyers who:

● Plan to flip or renovate a property and sell fast
● Need funding while waiting for long-term financing
● Want to grab an opportunity before another buyer does

Private lenders approve these loans faster than traditional banks. That’s a big plus for those on tight deadlines. However, short-term loans often come with higher interest rates.

When Should You Choose a Short-Term Loan?

Not every deal needs long-term financing. Short-term loans work well when:

● You have a solid exit strategy (selling or refinancing soon)
● The property needs improvements before securing a better loan
● You expect to increase income from the property quickly
● You need funding without strict credit requirements

Since private lenders focus more on property value than credit scores, they approve these loans faster. But borrowers must be ready to repay or refinance soon.

What Is a Long-Term Commercial Property Loan?

Long-term loans last anywhere from 5 to 30 years. These loans suit investors who plan to hold onto a property for years. They help buyers who:

● Want stable payments with lower interest rates
● Plan to lease out the property for long-term income
● Don’t want the stress of refinancing often

With long-term loans, private lenders spread payments out over time. That means lower monthly costs. But getting approved takes longer, and lenders might require larger down payments.

When Should You Choose a Long-Term Loan?

A long-term loan makes sense when:

● You plan to keep the property for rental income
● You prefer steady payments over time
● You want to avoid the risk of refinancing too soon
● You need lower interest rates to maximize profits

Private lenders offer flexible terms, making long-term loans more attractive for stable investments.

Comparing Costs: Short-Term vs. Long-Term Loans

Interest Rates

Short-term loans usually have higher rates, sometimes 8% to 15%. Long-term loans offer lower rates, often between 5% to 10%.

Monthly Payments

Short-term loans have higher monthly payments since the loan term is shorter. Long-term loans spread costs over many years, reducing each payment.

Speed of Approval

Short-term loans close in days or weeks. Long-term loans take longer, often a few months, due to paperwork and approvals.

Total Cost Over Time

Short-term loans cost less in total but require quick repayment. Long-term loans cost more in the long run due to interest over time.

Final Thoughts

Choosing the right Commercial property loans in San Antonio can be tricky. That’s where we come in. At Proactive Commercial Lending Group, we help investors and business owners find financing that fits their needs.

Need fast funding for a short-term project? We’ve got you covered. Looking for long-term financing with steady payments? We can do that too.

We make loan approvals simple. No endless paperwork. No unnecessary delays. Just flexible, smart solutions tailored to your goals.

If you’re considering commercial property loans in Dallas, let’s talk. Our team makes financing easy, so you can focus on your investment.