A commercial loan package is the complete set of documents, financial statements, and property information that a borrower submits to a lender when applying for commercial real estate financing. The quality and completeness of your loan package directly determines how fast your deal moves through underwriting, whether you receive competitive terms, and in many cases, whether you get approved at all.
According to industry data, approximately 67% of commercial loan applications have at least one missing item at submission, and incomplete documentation is the number-one cause of delayed approvals in the United States (source: AIO Network). A well-organized loan package signals to lenders that you are a serious, detail-oriented borrower, and it gives underwriters everything they need to make a fast decision.
This guide covers every document you need, how to organize your submission, what lenders prioritize during review, and the common mistakes that slow down or derail commercial loan applications. Whether you are applying for an acquisition loan, a refinance, or an SBA loan, this checklist will help you submit a package that gets results.
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What Should Be Included in a Commercial Loan Package?
A complete commercial loan package contains four major categories of documents: borrower financials, property information, entity and legal documents, and the loan request itself. Missing even one item from any category can stall your application for days or weeks while the lender sends follow-up requests.
Here is the full breakdown of what belongs in every commercial loan package:
Borrower Financial Documents
- Personal financial statement (PFS) for each guarantor
- 3 years of personal tax returns for all guarantors
- 3 years of business tax returns for the borrowing entity
- Year-to-date profit and loss statement
- Current balance sheet
- 3-6 months of personal and business bank statements
- Resume or CV highlighting real estate experience
- Schedule of real estate owned (REO schedule)
Property and Deal Documents
- Purchase agreement or letter of intent
- Current rent roll with tenant names, lease terms, and monthly rents
- 3 years of historical operating statements (income and expenses)
- Year-to-date operating statement
- Property photos (exterior and interior)
- Site plan or survey
- Environmental reports (Phase I, Phase II if applicable)
- Capital expenditure history and planned improvements
Entity and Legal Documents
- Articles of incorporation or organization
- Operating agreement or bylaws
- Certificate of good standing
- Entity organizational chart
- Authorization to borrow resolution
- Current insurance certificate
Loan Request Package
- Executive summary of the deal
- Loan amount requested, desired terms, and proposed structure
- Sources and uses of funds
- Business plan or investment thesis
- Exit strategy (for bridge loans or value-add deals)
This comprehensive list applies to most commercial real estate transactions. The exact requirements vary by lender and loan type, but starting with these documents positions you well for any program. For more on what happens after your package is submitted, see our commercial loan term sheet guide.
How Do You Prepare a Financial Package for a Commercial Loan?
Preparing a financial package for a commercial loan requires gathering accurate, current documentation that demonstrates your ability to repay the debt and manage the property. Lenders evaluate your personal finances, business operations, and the property's income-producing potential, so your financial package must address all three areas.
Step 1: Compile Personal Financial Statements
Every guarantor on the loan must submit a personal financial statement. This document lists all assets (real estate, investments, retirement accounts, cash), all liabilities (mortgages, credit cards, auto loans, other debts), and calculates net worth. Most lenders provide their own PFS template, but the SBA Form 413 is widely accepted.
Your PFS should be dated within 90 days of your application. Lenders want to see that your net worth equals or exceeds the loan amount, and that you maintain sufficient liquidity to cover 6-12 months of debt service as reserves.
Step 2: Organize Tax Returns and Income Documentation
Gather three years of personal and business tax returns, including all schedules and K-1s. Lenders use tax returns to verify the income reported on your financial statements and to identify any discrepancies. If your most recent tax return is more than 9 months old, expect the lender to request a tax return extension filing or a CPA-prepared interim financial statement.
Step 3: Prepare Property-Level Financials
For income-producing properties, you need trailing 12-month operating statements showing gross income, vacancy, operating expenses, and net operating income (NOI). If you are acquiring a property, request the seller's historical financials and reformat them into a consistent template.
Lenders use property financials to calculate the debt service coverage ratio (DSCR), which is the most important metric in commercial loan underwriting. A DSCR of 1.25x or higher is the standard minimum, meaning the property generates at least $1.25 in NOI for every $1.00 in annual debt payments (source: PropertyMetrics). Use our commercial mortgage calculator to estimate your DSCR before applying.
Step 4: Build Pro Forma Projections
For value-add deals, new acquisitions, or construction projects, lenders want to see realistic pro forma projections covering 3-5 years. Your projections should include assumptions for rent growth, vacancy rates, expense escalations, and capital reserves. Conservative projections with clearly stated assumptions are more credible than aggressive forecasts.
What Documents Do Lenders Require for a Commercial Real Estate Loan?
Lenders require a specific set of documents that varies by loan program, property type, and deal structure. However, the core document requirements remain consistent across most commercial real estate transactions.
SBA Loan Requirements
SBA loans have the most extensive documentation requirements because the Small Business Administration must verify eligibility in addition to creditworthiness. Beyond the standard financial documents, SBA loans require SBA Form 1919 (Borrower Information Form), SBA Form 413 (Personal Financial Statement), a business plan with revenue projections, a business debt schedule, proof of business ownership structure, and verification that the business qualifies as "small" under SBA size standards.
SBA loans typically take 60-90 days to close, and much of that timeline is driven by document collection and review.
Conventional Bank Loan Requirements
Conventional commercial mortgages require thorough financial documentation but skip the government eligibility requirements. Key documents include 3 years of tax returns (personal and business), current financial statements, property operating history, rent roll and copies of major leases, environmental reports, and a survey and title commitment. Conventional loans can close in 30-45 days when the borrower provides a complete package upfront.
Bridge Loan Requirements
Bridge loans prioritize the property and the exit strategy over borrower financials. Typical requirements include a property valuation (as-is and after-renovation), renovation budget and timeline, exit strategy, borrower track record, and personal financial statement with liquidity verification. Bridge loans can close in as little as 2-3 weeks with an experienced borrower and a complete package. For an overview of the costs involved, see our commercial loan closing costs breakdown.
How Long Does It Take to Prepare a Commercial Loan Package?
Preparing a commercial loan package typically takes 2-4 weeks for an experienced borrower and 4-8 weeks for a first-time applicant. The timeline depends on how organized your financial records are, how many guarantors are involved, and whether you need to order third-party reports like appraisals or environmental assessments.
Week 1: Gather Personal and Business Financials. Collect tax returns, bank statements, and personal financial statements for all guarantors. If you work with a CPA, request updated financial statements early because accounting firms often need 1-2 weeks to prepare them.
Week 2: Compile Property Documentation. Assemble rent rolls, operating statements, leases, property photos, and any existing reports. If you are acquiring a property, coordinate with the seller or their broker to obtain historical financials and tenant information.
Week 3: Prepare the Loan Request Package. Write your executive summary, define your loan request (amount, terms, structure), build your sources and uses schedule, and create pro forma projections.
Week 4: Review, Organize, and Submit. Review every document for accuracy and completeness. Organize the package in a logical order. Create a table of contents that indexes every document. Submit digitally through the lender's portal or via secure email.
Starting early gives you time to resolve issues such as missing tax returns, outdated appraisals, or discrepancies between your financial statements and tax filings. If you are a first-time commercial real estate investor, build in extra time for learning the process.
What Mistakes Should You Avoid in a Commercial Loan Application?
The most damaging mistakes in a commercial loan application are incomplete documentation, inconsistent financial data, and unrealistic projections. These errors delay underwriting, erode lender confidence, and can result in denial or less favorable terms.
Submitting Incomplete Documentation. Incomplete packages are the single biggest cause of commercial loan delays. When a lender discovers missing items, they send a request for additional information, which can add 1-3 weeks to the timeline per round of follow-up. Use the lender's checklist as your guide and verify every item before submitting.
Providing Inconsistent Numbers. If the income on your tax returns does not match the income on your personal financial statement, or if property operating statements conflict with the rent roll, lenders flag these inconsistencies and dig deeper. Reconcile all documents before submission.
Using Aggressive Pro Forma Assumptions. Overly optimistic rent growth projections, below-market vacancy assumptions, or understated operating expenses make underwriters skeptical. Lenders stress-test your projections, and aggressive assumptions often result in a lower loan amount or outright denial.
Ignoring Your Credit Report. Pull your personal credit report before applying. Errors, collections, or high utilization can lower your score and affect your loan terms. Addressing credit issues before you apply is far easier than explaining them after a lender flags them during underwriting.
Failing to Explain Anomalies. Every borrower has financial situations that may look unusual on paper. Provide a brief written explanation for anything that might raise questions. Proactive transparency builds lender confidence.
Rushing the Application. Submitting a hastily assembled package with errors, missing pages, or duplicate documents signals disorganization. Take the time to review every document and organize your package professionally.
Ready to start assembling your loan package? Contact our team for a free consultation and a customized document checklist based on your specific deal.
How Does a Strong Loan Package Improve Your Approval Odds?
A strong loan package does more than meet minimum requirements. It actively works in your favor by reducing underwriting friction, building lender confidence, and positioning you as a preferred borrower.
Faster Underwriting Turnaround. When your package is complete and well-organized, the underwriter can review it without sending follow-up requests. Each round of additional document requests adds 5-10 business days to the process. A complete initial submission can shave 2-4 weeks off your total timeline.
Better Loan Terms. Lenders offer their best pricing to borrowers who demonstrate financial strength, organization, and transparency. A strong package that clearly shows adequate DSCR, sufficient liquidity, and relevant experience makes the underwriter's job easier, and lenders reward that with competitive rates.
Higher Approval Rates. Borrowers who submit complete, accurate, and well-organized packages are significantly more likely to receive approval. The package itself becomes evidence of your competence as a borrower and operator.
Competitive Advantage in Multiple-Offer Situations. When sellers receive multiple offers, a buyer with a pre-organized loan package and a lender pre-qualification letter has a significant advantage. Sellers prefer buyers who can demonstrate financing readiness because it reduces the risk of the deal falling through.
What Financial Statements Do Commercial Lenders Want to See?
Commercial lenders evaluate financial statements at three levels: the personal level (guarantors), the entity level (the borrowing business), and the property level (the asset being financed). Each level serves a distinct purpose in the underwriting process.
Personal-Level Financial Statements
Personal Financial Statement (PFS): This is the most critical borrower document. It summarizes your total assets, total liabilities, and net worth. Key metrics lenders extract include net worth (should equal or exceed the loan amount), liquidity (cash covering 6-12 months of debt service), contingent liabilities, and your full real estate portfolio.
Entity-Level Financial Statements
Profit and Loss Statement (P&L): Shows revenue, operating expenses, and net income over a defined period. Lenders review 3 years of historical P&Ls plus a year-to-date statement to identify trends.
Balance Sheet: Provides a snapshot of the entity's assets, liabilities, and equity at a specific point in time.
Cash Flow Statement: Tracks cash inflows and outflows, showing how the business generates and uses cash. This is particularly important for operating businesses seeking owner-occupied commercial loans.
Property-Level Financial Statements
Operating Statement (T-12): The trailing 12-month operating statement is the foundation of property-level underwriting. It shows actual gross income, vacancy and credit loss, operating expenses by category, and net operating income.
Rent Roll: A detailed listing of all tenants, lease terms, current rents, escalations, and lease expiration dates. The rent roll validates the income shown on the operating statement.
For detailed guidance on how lenders use these financial metrics to structure your loan, see our commercial loan term sheet guide.
What Makes an Executive Summary Stand Out to Lenders?
The executive summary is the first document a lender reads, and it sets the tone for the entire package. A strong executive summary answers three questions: What is the deal? Why does it make sense? And why are you the right borrower?
Your executive summary should include a deal overview (property type, location, size, purchase price, loan amount requested), an investment thesis (market fundamentals, value-add strategy, projected returns), borrower qualifications (experience, track record, net worth, key team members), and financial highlights (DSCR, LTV, debt yield, sources and uses table).
Keep the executive summary to 2-3 pages. Use bullet points, tables, and clear headers to make it easy to scan. Lenders review dozens of packages each week, so a focused, professional summary helps your deal stand out.
Contact Clearhouse Lending to discuss your deal and get expert guidance on structuring your loan package for maximum impact.
How Can You Organize Your Loan Package for Maximum Impact?
Organization is one of the simplest ways to differentiate your loan package. A well-structured submission shows professionalism, reduces underwriting time, and minimizes the chance that documents are overlooked.
Use a table of contents. Create a detailed table of contents with numbered tabs or sections. Label each section clearly: Loan Request, Borrower Financials, Property Information, Entity Documents, and Third-Party Reports.
Follow the lender's checklist order. If the lender provides a document checklist, organize your package in the same order. This makes it obvious that every item has been addressed.
Include a cover letter. A brief cover letter introduces the deal, identifies the key contacts, and lists the enclosed documents.
Provide clean, legible copies. All documents should be complete, legible, and properly oriented. Tax returns should include all pages and schedules. Financial statements should be signed and dated.
Submit digitally with proper file naming. Name files descriptively: "2023_Personal_Tax_Return_John_Smith.pdf" is far more useful than "Scan_001.pdf."
Pre-answer likely questions. Include a brief narrative explaining any items that might raise questions: gaps in income, recent large transactions, contingent liabilities, or deferred maintenance on the property.
What Are the Most Frequently Asked Questions About Commercial Loan Packages?
What is the minimum credit score for a commercial real estate loan?
Most conventional commercial lenders require a minimum personal credit score of 680 for all guarantors. SBA loans may accept scores as low as 650 with strong compensating factors such as high liquidity, significant collateral, or extensive real estate experience.
How many years of tax returns do I need to provide?
Most lenders require three years of personal and business tax returns, including all schedules and K-1 forms. Some bridge lenders and private capital sources may accept only one to two years.
Do I need an appraisal before applying?
You do not need to order an appraisal before applying. The lender will order the appraisal from an approved appraiser after your loan application is accepted. However, having a recent broker opinion of value (BOV) or comparable sales data in your package helps lenders evaluate the deal quickly.
Can I use the same loan package for multiple lenders?
Yes, the core financial documents, property information, and entity documents are the same across lenders. However, each lender may have specific forms and additional requirements. Prepare a master package and customize it for each lender's specific checklist.
What is a schedule of real estate owned?
An REO schedule is a spreadsheet listing every property you own or have an interest in. For each property, include the address, property type, ownership percentage, market value, debt balance, monthly debt service, and NOI.
How far in advance should I start preparing my loan package?
Start preparing at least 4-6 weeks before you plan to submit. First-time borrowers should allow 6-8 weeks to account for gathering tax returns, updating financial statements, and writing the executive summary.
What happens after I submit my loan package?
After submission, the lender reviews your package for completeness and performs an initial evaluation. If the deal meets their criteria, they issue a term sheet outlining proposed loan terms. After you accept, the loan moves into formal underwriting. For a detailed walkthrough, see our commercial loan term sheet guide.
Do I need an attorney to prepare my loan package?
You do not need an attorney to prepare the loan package itself. However, having a commercial real estate attorney review your entity documents and purchase agreement is strongly recommended. An attorney becomes essential during closing. Learn more in our commercial loan closing costs breakdown.
Have questions about your specific deal? Contact Clearhouse Lending for personalized guidance on building a loan package that gets approved.
Clearhouse Lending provides commercial real estate financing for acquisitions, refinances, construction, and bridge loans nationwide. Our team guides borrowers through the loan packaging process from document collection to closing. Get in touch today to discuss your next commercial real estate transaction.