Commercial loan refinancing documents, calculator, and building plans representing ARC Private Lending’s Los Angeles lending solutions

Unlocking Better Opportunities: Is 2025 the Right Time to Refinance Your Commercial Loan in Los Angeles?

Refinancing a commercial loan can feel overwhelming—especially in a changing market like Los Angeles. Rising rates, stricter underwriting, and maturing loans have many investors asking:

👉 “Is now the right time to refinance—and should I use a private lender instead of a bank?”

If that sounds familiar, you’re not alone. Many California property owners are navigating expiring mortgages, balloon payments, and financing barriers that didn’t exist when they first acquired their property.

That’s where commercial loan refinancing in Los Angeles with a private lender becomes a smart alternative.

At ARC Private Lending, we help investors refinance quickly, even when banks say no. With more than a decade of California lending experience, we evaluate real estate deals based on the property and income—not just paperwork or credit checkboxes.

 

Understanding Commercial Loan Refinancing: Key Reasons and Timing

What Is Commercial Loan Refinancing—and Why Do Investors Do It?

Commercial refinancing replaces an existing mortgage with a new loan. This helps investors:

  • Lower payments or interest rates
  • Pull out equity for renovations or acquisitions
  • Avoid balloon payments or maturity foreclosure
  • Improve cash flow with longer terms
  • Shift from strict bank terms to more flexible lending

Refinancing isn’t just about lowering interest—it’s about improving your financial position.

 

When Is the Right Time to Refinance a Commercial Loan?

Most investors consider refinancing when:

  • 📉 Market rates decrease
  • 📈 Property value increases
  • 📅 A loan maturity or balloon payment is approaching
  • 🚧 A bank refuses renewal due to stricter DSCR or credit requirements
  • 🏗 You need capital for upgrades or expansions

If you’re self-employed, managing irregular income, or investing in non-traditional property types, private lending may be your strongest path forward.

💡 ARC Private Lending specializes in helping borrowers who need flexible underwriting.

 

Bank Loans vs Private Commercial Real Estate Lending

What’s the Difference?

Feature Traditional Bank Loan Private Lender (ARC Private Lending)
Approval Speed Weeks to Months Days to Weeks
Documentation Required Extensive Streamlined
Credit Score Emphasis High Moderate/Low—asset focused
Flexibility Limited High—tailored to scenario
Property Types Accepted Standard CRE Broader mix, including complex deals
Prepayment Penalties Often higher Often negotiable
Who It’s Best For “A” borrowers, institutional Entrepreneurs, investors, self-employed

This flexibility is especially valuable for borrowers in Los Angeles facing unique property scenarios or credit challenges. For a comprehensive look at responsible lending regulations and borrower rights, visit the Consumer Financial Protection Bureau’s commercial lending resources.

Step-by-Step: The Commercial Mortgage Refinance Process

  1. Evaluate Current Loan Terms
    Gather all documentation, note maturity dates, and assess current rates, LTV, and DSCR (debt service coverage ratio).
  2. Set Goals for Refinancing
    Decide if your priority is reducing rate, freeing up equity, avoiding a balloon payment, or restructuring for growth.
  3. Research Lender Options
    Compare local banks, credit unions, and private lenders like ARC Private Lending.
  4. Get a Property Valuation
    Updated appraisals help determine current LTV requirements for commercial refinance.
  5. Prepare Documents
    Have rent rolls, operating statements, entity formation documents, and recent tax returns ready.
  6. Submit an Application
    Work with your chosen lender on streamlined underwriting—ARC offers faster approval for qualified commercial property owners.
  7. Close and Transition
    Pay off the old loan and transition to your new terms with a lower payment, new cash-out, or improved flexibility.

Success Story: A Los Angeles Retail Owner’s Refinancing Journey

When a Los Angeles retail center owner faced a balloon payment, their bank declined to renew the loan due to tightened underwriting. Turning to ARC Private Lending, the owner was able to quickly refinance with a private lender, avoiding foreclosure, unlocking additional working capital, and benefiting from tailored DSCR and LTV requirements. Years later, their property value has risen, and they’ve since refinanced into longer-term conventional financing.

When Does It Make Sense to Choose a Private Lender?

Consider a private lender when:

  • You have less than perfect credit
  • Your loan is time-sensitive
  • Your income is non-traditional
  • Your property is in transition
  • You need cash-out refinancing quickly

For many Los Angeles investors, private lending isn’t a last resort — it’s a strategic, fast-moving financial tool.

 

Conclusion and Call-to-Action

In Los Angeles and across California, commercial loan refinancing can unlock financial flexibility, lower payments, and empower property owners to strike when opportunity knocks. If you’re facing a maturing loan, want to pull equity out, or need answers faster than a traditional bank, choose ARC Private Lending—the trusted choice for private commercial real estate refinancing in California.

Ready to refinance your commercial loan or bridge the funding gap fast? Connect with our commercial lending team today to discuss your needs.

Fast decisions. Flexible terms. California-focused lending.

 

Common Commercial Loan Refinancing Questions (FAQs)

Q: What documents are required to refinance commercial real estate loans?
A: Most lenders request property financials, rent rolls, tax returns, and proof of insurance; ARC Private Lending simplifies this with a personalized checklist.

Q: How do LTV requirements impact my refinance options?
A: Most commercial loan refinance lenders seek LTVs of 65%–75%. If your property has appreciated or you’ve reduced debt, you may qualify for larger, better loans.

Q: What are the current commercial real estate refinance rates in Los Angeles?
A: As of late 2025, rates range from 7%–11% based on property type, borrower strength, and lender choice. Private lenders may be slightly higher but offer superior flexibility.

Q: Can I refinance a commercial loan if I’m self-employed?
A: Yes—unlike many banks, ARC Private Lending specializes in loans for self-employed borrowers and evaluates income with a more nuanced approach.

Q: What is a commercial real estate bridge loan refinance?
A: Bridge loans provide short-term capital to repay maturing debt or prepare for long-term permanent financing; this is ideal for transitional periods or faster closing.

Q: What are the differences between a private lender and a bank for commercial real estate refinance?
A: Private lenders excel in flexibility, speed, and creative deal structuring, while banks tend to have stricter standards, longer timelines, and less tolerance for self-employed borrowers.

How fast can a commercial refinance happen?
 With private lending, typically 7–21 days depending on documentation and underwriting.

Do I need perfect credit?
 No — ARC Private Lending evaluates investment value, not just credit score.

Can I refinance mixed-use or specialty use properties?
 Yes, including retail, industrial, office, medical, automotive, and non-stabilized buildings.