There are a number of expenses involved in running a small business. Unfortunately, when you’re breaking even each quarter, it can prevent you from taking things to the next level. When the time comes to invest in a piece of commercial real estate to run your company out of, for example, you might not have the funds required to accomplish this task. Luckily, there are several financing options worth considering when you don’t have access to the capital you need. CMBS conduit loans might be a perfect fit when you’re in need of commercial space.

Basic Facts

To get started, you need to have an idea of what this financing option entails. Essentially, a conduit loan is a type of financing solution offered specifically to people looking to purchase commercial properties. The key difference between a conduit and a traditional loan like a mortgage is that the commercial mortgage-backed security loan is sold to other investors on a secondary market. The sale of the loan creates a number of changes in the financing, including how you repay the money and who you make your regular payments to.

Key Benefits

There are several advantages that come along with pursuing this financing option. Unlike traditional mortgages, CMBS conduit loans have much more appealing interest rates. Another benefit is that you will not be held personally responsible if you are unable to pay the loan back. With a mortgage, you must pay the loan back or suffer the consequences. Conduit options allow you to skip the personal guarantee. The only exception is if you deliberately cause ruin to your business or the investment funds. In these situations, you will be required to pay back the full amount.


While you can expect a number of benefits from this financing solution, there are also a few considerations to take. For one, you will have little say during the negotiation period of the loan terms. This means that you need to be very thorough in reading over the terms and agreements. In a majority of cases, tax law states that the terms cannot be changed once both parties have signed the contract. Before making any decisions, understand the ins and outs of your loan and guarantee it is the right fit.

In order for you to find the best financing for your small business, you need to explore the options available to you. When you’re looking to invest in commercial properties, CMBS conduit loans could be the perfect fit. Explore the details and determine whether or not this is a solution that can help your company get ahead.