Finimpact

Small Business Loans for Real Estate Agents

As a real estate agent, you are likely to face all sorts of challenges over the course of your career. Naturally, securing business financing when you need it is probably among the most important tasks to accomplish.

Small Business Loans for Real Estate Agents
Tetiana Sitiugina-Babiuk
Financial Sector Specialist and Content Strategist

Take volatile markets, throw in a bit of seasonal variation, and add a pinch of everchanging mortgage rates - and you may easily find yourself in a financially challenging situation. Real estate is an industry, where submitting an offer doesn’t always mean closing the deal, and closing the deal nearly never means instant money. Yet, business expenses never stop, your own mortgage payments are due every month, and you find yourself wondering whether there are special loans for real estate agents.

Yes, there are! In this article, we are going to cover everything you need to know about applying for a small business loan as a real estate agent.

Our Top Picks for Best Real Estate Agent Loan

biz2credit review
  • Multiple loan types available
  • Funding in 48h
  • Soft credit pull
credit score
Min. Credit Score 600+
loan amount
Loan Amount $25K - $6M
loan repayment
Loan Repayment 12-36 months
forafinancial
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months
nationalfunding
  • Fast funding
  • Early payment discounts
  • Best for bad credit loans
Min. Credit Score
Min. Credit Score 500+
Loan Amount
Loan Amount $250K-$500K
Loan Repayment
Loan Repayment 2-5 years

How to Choose the Best Real Estate Agent Loan?

While a small business loan for real estate agents may be used for a number of purposes, choosing the right financial product ultimately boils down to a few factors.

  • Loan features. Take a close look at the specific loan terms, repayment optionality, and loan amounts, - and how this applies to your business. For example, if you know you have a significant commission coming in in a few months, make sure the loan amount is sufficient to cover your business expenses until then.
  • Application process. Consider the invasiveness of application information requirements, whether it requires a hard or soft credit check, the loan funding time, and any other distinctively competitive offerings. If you need funding sooner, online lenders typically offer a much faster and easier application process than conventional ones.
  • Interest rates and fees. Find out about the different types of fees associated with taking the small business loan for real estate agents, as well as the minimum and maximum interest rates you may qualify for.
  • Qualification process. What do you need to qualify for the loan? Think about the minimum credit score, annual revenue, and business history requirements.
  • Customer support. Consider accessibility to a live customer support representative, the degree of multi-channel support, and the availability of supplemental information and tools.
  • Online user reviews. To get the most accurate idea about the lender and its financial products, check customer reviews on independent review sites such as Trustpilot.
  • Perks and bonuses. Consider specified service offerings like payment flexibility, advertising transparency, and advanced technology. As a real estate agent, you are likely to receive significant commission amounts at once, - therefore, it is a good idea to look for loans that allow lump sum prepayments.

Best Small Business Loans for Real Estate Agents - Full Overview

The best small business loan and lender for your specific business largely depends on what you are going to use the funds for. Maybe, you need some extra money to expand your current business. Or, perhaps, you require working capital to make payroll. Whatever the case, these lenders provide some of the best real estate agent business loans:

1. Biz2Credit - Best for Commercial Real Estate

Thinking of expanding your real estate business or opening a new office location? Biz2Credit might have just the right financial product for you! Among other small business loan products, the lender offers commercial real estate loans, which can be used to purchase specific commercial properties. These loans are a great option if your real estate business is undergoing an expansion or requires new premises.

Pros
Fast and easy application process
Fast disbursement of funds - under 72 hours
High borrowing limits - up to $6 million
Great customer service
Cons
Not all fees are disclosed upfront
Strict eligibility criteria

Biz2Credit’s commercial real estate loans allow you to borrow up to $6 million for the purpose of funding commercial real estate acquisitions. Here, the term length can vary between 12 and 36 months, with monthly repayment options. The interest rates are reasonable, with APR range starting from 10%.
However, the qualification requirements for Biz2Credit loans are somewhat strict, as compared to other online lenders: you need to have a minimum credit score of 660, with a minimum annual revenue of $250,000.

Features

Loan Value

$250,000 - $6 million

Term Length

12 - 36 months

Repayment Period

Monthly

Origination Fee

1% - 6%

APR Range

Starting from 10%

Minimum Credit Score

660

Minimum Annual Revenue

$250,000

Minimum Time in Business

18 months

The Bottom Line

All in all, Biz2Credit is a great choice for agents with an established real estate business, looking to expand further by acquiring commercial properties. While the qualification criteria might be somewhat stringent, the quick online application process and incredibly fast funding make commercial real estate loans from Biz2Credit a great option to consider.

Try Biz2Credit

2. Fora Financial - Best for Short-Term Business Loans

Fora Financial is known for its short-term small business loans for realtors, which can be used to cover things like unexpected cash flow shortages and short-term payroll needs until your commission comes in.

Pros
Lenient eligibility criteria
Easy application process
Quick approval decision
Fast disbursement of funds
Responsive customer support
Cons
Slightly high interest rates
Origination fees and late payment fees
Overly-frequent email communication

Fora Financial’s short-term business loan amounts range between $5,000 and $500,000, with repayment terms varying from 4 to 14 months. The eligibility criteria are fairly lenient: your business needs to be in operation for at least six months, with an annual revenue of $12,000 or more. In addition, you must have a personal credit score of 500 or more and no open or unsettled bankruptcies.

Features

Loan Value

$5,000 - $500,000

Term Length

4-15 months

Repayment Period

Monthly

Origination Fee

Up to 2.5% plus borrowing fee of 10% - 30% of the loan total

Interest Rate

Factor 1.1 - 1.3

Minimum Credit Score

500

Minimum Annual Revenue

$12,000

Minimum Time in Business

6 months

The Bottom Line

If you are looking for a short-term small business loan to cover the immediate needs of your real estate business, Fora Financial online lender is a worthy option to consider. While the associated interest rates might be a little higher, its lenient eligibility criteria, simple application process, and fast turnaround times make it an attractive option for quick funding needs.

3.National Funding - Best for Bad Credit Business Loans

If you have recently started your real estate business and are still in the process of building a good credit history, National Funding is just the right lender for you. Its bad credit business loans come with lower eligibility criteria, albeit you would have to pay fairly high interest rates. Nonetheless, even if you fail to obtain financing everywhere else, National Funding will likely entertain your loan.

Pros
Lenient qualification requirements
Fast turnaround times
Easy application process
Low credit scores are welcome
No collateral needed
Yearly payment discounts
Cons
Factor rates can get expensive
Some additional fees apply

The bad credit business loans can range between $5,000 and $500,000 in value and have a term length between 6 and 15 months. The associated interest rate is somewhat high, with factor rates starting from 1.17.
However, National Funding has high approval rates and welcomes applicants with credit scores starting from 500, which is lower than most other lenders. To qualify, you would need to be in business for at least 12 months, make at least $100,000 in annual income, and have at least $1,500 in the bank.

Features

Loan Value

$5,000 - $500,000

Term Length

6-15 months

Repayment Period

Monthly

Origination Fee

2% plus one-time fee 17% - 36% of the loan total

Interest Rate

Factor rates starting from 1.17

Minimum Credit Score

500

Minimum Annual Revenue

$100,000

Minimum Time in Business

12 months


The Bottom Line

National Funding is a great resource for real estate agents with below-average credit scores. While you do need to make at least $100,000 annually in order to qualify for their loan, the credit score requirements are low, the application process requires little documentation, and the fund disbursement is quick.

4. Kabbage - Best for Business Lines of Credit

A business line of credit from Kabbage online lender is a great option if you are looking for short-term funding to support daily operational expenses like payroll. As a startup acquired by American Express, Kabbage issues its lines of credit only to customers already associated with American Express - or those who have previously received Kabbage financing. Should you qualify to apply, you can enjoy rapid processing, quick fund disbursement, and low credit score requirements.

Pros
Quick processing times
Fast online application
No minimum FICO credit score requirements
Debit card provided to access funds
Friendly and accessible customer service
Funds can be sent directly to PayPal account
Cons
Only available to American Express clients
High interest rates
Complicated fee structure
No prepayment incentive

With Kabbage, the loan amounts range between $1,000 and $150,000 and come with repayment periods of 6, 12, and 18 months. While the interest rate of 24% to 99% annually may seem extremely high, keep in mind that these lines of credit are designed to be paid back quickly.
Kabbage doesn’t have a specific credit score requirement, but it does conduct a hard credit pull when reviewing your application.

Features

Loan Value

$1,000 to $150,000

Term Length

6, 12, or 18 months

Repayment Period

Monthly

Origination Fee

None

Interest Rate

24% to 99% APR range

Minimum Credit Score

None

Minimum Annual Revenue

$50,000 annual revenue or $4,200 monthly revenue over the past three months

Minimum Time in Business

12 months


The Bottom Line

If you are already an American Express customer or have received Kabbage funding previously, this lender is a viable option to consider for a business line of credit. No minimum credit score requirements is an attractive feature - but be prepared to pay for it through higher interest rates.

Try Kabbage

5. Fundbox - Best for Business Term Loans

If you require a quick lump sum, you can apply for a Fundbox business term loan for real estate agents. The funds can then be used for a one-time purchase - for example, to upgrade your real estate office.

Pros
Short application process
Rapid fund disbursement
Low minimum credit score requirement
No monthly minimums
No additional fees apart from interest rate
Payments allowed through automatic debiting
Cons
High interest rates
Relatively small loan limit

Fundbox offers convenient term loans ranging between $1,000 and $150,000, with repayment terms of either 24 or 52 weeks.
Even though the loan application process is fairly easy, the rates tend to be high as compared to some other online lenders. However, if you prove to Fundbox that you are able to quickly repay the loan, you will be offered more funds at lower rates the next time you apply.

Features

Loan Value

$1,000 to $150,000

Term Length

24 or 52 weeks

Repayment Period

Weekly

Origination Fee

None

Interest Rate

8.33% for 24 week terms

18% for 52 week terms

Minimum Credit Score

600

Minimum Annual Revenue

$100,000

Minimum Time in Business

6 months


The Bottom Line

Term loans from Fundbox come with a quick application process, fast approval times, and rapid fund disbursement. Even though the rates might seem high, don’t get discouraged: if you pay off your loan quickly, you will be offered a much better deal the next time around.

Try Fundbox