Resources
Know before you borrow
The terms, timelines, and documents behind a commercial loan, explained without the jargon.
Common questions
Lending glossary
- LTV
- Loan-to-value: the loan amount divided by the appraised property value.
- NOI
- Net operating income: revenue minus operating expenses, before debt service.
- Cap rate
- NOI divided by property value, the market's yield expectation for the asset.
- Amortization
- The schedule over which principal is repaid, often longer than the term.
- Balloon
- A remaining balance due at the end of a term shorter than the amortization.
- Recourse
- Whether a lender can pursue the guarantor personally beyond the collateral.