Equity-Based Business Funding
Real Estate-Backed Business Loans
Turn the equity in your commercial building, investment property or home into working capital for the business you own and operate. Funding is based on property value first, so it can work when unsecured loans won't.
- ✓For business owners
- ✓$500K–$5M
- ✓Up to 70% LTV
- ✓2–30 year terms
- ✓Close in 3–5 weeks
Who Can Qualify
These loans are made to business owners only. You must own and operate the business receiving the funds, and the funds must be used for that business. We don't offer them for personal, consumer or investment-only purposes.
- Owners, partners and members of an operating business — LLC, corporation, partnership or sole proprietorship
- Property held personally or through the business
- Funds applied to business needs: expansion, equipment, payroll, debt consolidation or an acquisition
Program Guidelines
| Guideline | Details |
|---|---|
| Transactions | Purchase, cash-out and refinance |
| Loan size | $500,000 – $5,000,000 |
| Max LTV | Up to 70% |
| Interest rate | Market-driven; typically 10–12% |
| Origination fee | 2% |
| Term | 2–30 years |
| Prepayment | Allowed, no penalty |
| Deposits | None required for approval |
| Time to close | 3–5 weeks |
| Markets | Nationwide, with a focus on major metro areas |
How It Works
We place a first lien on qualifying real estate and lend up to 60–70% of its value. If there's an existing mortgage, it's paid off at closing and the remaining available equity goes to your business. Example: a property worth $1,000,000 at 65% LTV supports up to $650,000; with a $250,000 mortgage paid off, about $400,000 is available before closing costs. Illustration only — not a quote.
Property Types We Lend On
- Owner-occupied commercial buildings (shops, warehouses, offices, yards)
- Investment and rental properties, residential or commercial
- Mixed-use, single-family and multifamily properties
- Industrial warehouses and logistics centers
- Hotels, resorts and other hospitality properties
- Your primary residence, for business-purpose funding
Common Uses
- Expansion, a new location or a large contract ramp-up
- Paying off high-cost merchant cash advances
- Buying out a partner or acquiring a business
- Equipment, inventory and payroll during growth
Real Estate-Backed vs. Other Options
| Option | Driven by | Typical term | Best for |
|---|---|---|---|
| Real estate-backed loan | Property equity (up to 60–70% LTV) | 2–30 years | Large amounts, bruised credit, fast equity access |
| SBA loan | Credit, financials, collateral | 10–25 years | Strong files that can wait 30–90 days |
| Bank term loan | Credit and cash flow | 2–5 years | Established, strong-credit businesses |
| Bridge loan | Upcoming transaction | Short term | Gaps before a sale or refinance |
What You'll Need
- Confirmation that you own and operate the business receiving the funds
- Completed and signed credit application
- Property address, a recent appraisal or value estimate, and property type, size, age and condition
- Current mortgage statement (refinance or cash-out)
- Fully executed purchase contract (purchases)
- The last four months of business bank statements, downloaded as PDFs
- Driver's license and a short description of how the funds will be used
We review real estate-backed applications nationwide, including California, Texas and Florida.
Read the guide: Using Commercial or Personal Real Estate to Fund Your Business
Frequently asked questions
- Do I need to own a business to qualify?
- Yes. These loans are made to business owners only. You must own and operate the business that receives the funds, and the money must be used for that business. We don't offer them for personal, consumer or investment-only purposes.
- What is a real estate-backed business loan?
- It is business funding secured by a first lien on real estate you own — commercial property, an investment property or your personal residence. The property's equity, not just your credit score, drives the loan amount.
- How much can I borrow against my property?
- Northwood programs lend up to 60–70% of the property's value (loan-to-value), as long as the loan can sit in 1st lien position. Loan sizes run from $500,000 to $5,000,000. Final LTV depends on property type, location, condition and appraisal.
- Can I use my primary home to fund my business?
- Yes. Business-purpose loans can be secured by your primary residence, as well as commercial or investment property. The funds must be used for the business. Using your home puts it at risk if the loan is not repaid, so compare carefully.
- Do you lend in 2nd position behind an existing mortgage?
- No. These programs require 1st lien position. If the property has an existing mortgage, the new loan generally pays it off at closing and the remaining equity up to the LTV limit is available to the business.
- What are the terms?
- Terms run 2–30 years. Rates are market-driven and typically 10–12%, with a 2% origination fee. There is no prepayment penalty and no deposit is required for approval. Typical time to close is 3–5 weeks. Final terms are provided in a written offer.
- Is credit as important as with other loans?
- Equity is the primary factor, so owners with bruised credit or limited business history may qualify when an unsecured loan isn't available. Credit, income and the use of funds are still reviewed. Approval is not guaranteed.
Unlock Your Property's Equity.
For business owners using property equity to fund the business. Tell us about the property and how you'll use the funds. Credit decisions typically in 24–72 hours after a complete application.
- ✓ $25K–$5M available
- ✓ Funded in 2–5 business days
- ✓ All credit profiles considered
- ✓ No upfront fees, no prepayment penalties