Commercial Construction Loans

Whether you’re a commercial property builder striking on your own for the first time, or you work on a bigger scale and have many projects under your belt, we can arrange new construction loans from you, ranging from $150,000 to over $50 million.

So, what is a loan for commercial construction? It’s basically financing for commercial property and you can access it in different ways. But the key thing you want to do is minimise equity and maximise return! This means taking your construction project’s cash flow cycle and then matching it up with the construction loan. So at any given time, you’re using the smallest amount of equity possible, in pursuit of the biggest return for your project.

We offer three types of loans for commercial construction:

Against cost

We can arrange a loan for your commercial construction against cost. This is probably the most typical construction loan. It’s where you get the loan advanced by lenders as a particular share of the cost of construction.

What’s typical in these loans is that you can get funded to the tune of 80% of your hard costs of construction.

We can do better than this though, by working with lenders who will loan you more, by giving recognition to the construction-associated soft costs, and then extending this against the total cost of construction.

Against the value on completion

Rather than focusing on the cost of construction, this type of loan looks at the value on completion, what is expected when you complete your project. In some situations, this could permit the financing of up to 100% of the hard costs of the project.

Mezzanine loans

Working alongside commercial property finance, or acting as a second mortgage, mezzanine funding can support your loan for commercial construction. What it does is free cash for other projects, or make the amount of upfront cash needed for financing the construction as little as possible. It does this by reducing the project’s requirement for equity.

Your choice

Each of us work in specific and individual circumstances. That means that both lenders and loans should be matched to you in the best partnership possible.

Merchant Cash has over 60 lenders on our lending panel. They range from private lenders to the major domestic banks and international trading banks.


Let us help you find the right construction loan for your needs and circumstances. Get in contact with us and we’ll be happy to discuss how to best meet your requirements.