Unsecured commercial loans allow you to get the money that you need to run your business without needing any collateral. This is a particularly risky prospect for commercial mortgage lenders. An unsecured loan to pay off part of the mortgage is more likely to end up in default.

Nonetheless, people do take out unsecured mortgages, usually to make the down payment. If you don't have the cash for a down payment, or any collateral to put up, then an unsecured commercial loan may be your best option.

Before you apply for large commercial unsecured loans, keep in mind the following:

1. Unsecured loan rates are typically much higher than traditional loans. You should definitely shop around to make sure that you get the best deal on your loan.

2. Because of the high risk, a commercial unsecured loan broker will want to see a high credit score from the business owner applying.

3. Business owners should also have a solid business plan, preferably already showing a positive cash flow when they talk to commercial mortgage lenders. An unsecured loan is easier to get if you can prove you have the income to repay it.

Action Steps to Commercial Loans
The best contacts and resources to help you get it done

Talk to unsecured commercial lenders about a mezzanine loan to pay your down payment

Commercial lenders will only offer you a mortgage for a certain percentage of the value of the property, typically 75%. If you don't have the money to make up the difference, you can try to take out a mezzanine loan to get the money that you need.

I recommend: PNC ARCS makes it easy for you to get the financing you need with a mezzanine loan. You can reach several lenders when you fill out an application with C-Loans. Keep in mind that mezzanine loans are typically for very large amounts, often over 2 million dollars.

Look for the best unsecured loan rate to save money

You don't want outrageous interest payments, so it's important for you to do what you can to get a good rate. Look for companies that offer unsecured loans at good rates or with alternative payment plans.

I recommend: BRT Financial offers unsecured commercial loans to business owners up to $100,000. If you have bad credit, you may want to consider a cash advance form FastUpFront. They offer an unsecured cash loan in exchange for a percentage of future credit card transactions.

Take out a large commercial unsecured loan

Some business owners need a large amount of money in order to get started. It can be difficult to qualify for a loan if you do not have collateral to back up the loan.

I recommend: Apply for business financing through E-Loan. They offer a variety of programs. The Small Business Administration also backs the loans for new business owners. Apply for an SBA loan through major banks such as Bank of America.

Tips & Tactics for Getting a Commercial Mortgage

Helpful advice for making the most of this Guide

• •  Because unsecured loan rates are often higher than secured loan rates, you may want to consider refinancing once you've build some equity in your property. This could save you a lot of money in the long run.