Leasehold Financing
Capital Solutions for Leasehold Improvements & Income Leases
Loans Secured by Leasehold Interests & Improvements
Leasehold Financing
Leasehold Financing allows businesses to secure loans using their leasehold interest in a property—not the land itself—as collateral. This type of financing is ideal for companies operating on leased land who need capital for improvements, expansions, construction, or to leverage an income-producing lease agreement.
Rather than relying on traditional real estate ownership, lenders evaluate the value of the leasehold, the property improvements, and the income generated by the lease to structure competitive, long-term financing.
How It Works
- Apply with your lease agreement and business financials
- Lender reviews the leasehold interest, tenant strength, and income stream
- Collateral assessed through a valuation of improvements or lease value
- Loan terms structured—often long-term, fixed or variable
- Receive capital for improvements, construction, or working capital
- Repay over 5–30 years, while maintaining full control of the leasehold
Flexible Terms
5 – 30 years
Competitive Interest Rates
5% – 15%
Higher Funding Amounts
Up to $2,000,000
How leasehold financing works!
Loan Amount: Up to $2,000,000
Terms: 5 – 30 years
Rates: 5% – 15%
Collateral: Company IP assets (patents, trademarks, copyrights, trade secrets, software, contract rights)
Qualifications:
- Minimum 650 credit score
- Satisfactory credit history with no recent bankruptcies or major delinquencies
- Long-term lease agreement, generally with a creditworthy tenant
- Lease structure often must be bondable or triple-net, reducing risk for the lender
- Financial statements showing ability to support the loan
- Leasehold valuation or appraisal (depending on lender)
Loan approval is contingent upon meeting lender-specific credit, income, and lease structure criteria.
Faster Funding’s
Leasehold Financing
If your business operates on leased land and needs funds for improvements, expansion, or working capital, Leasehold Financing can provide flexible and long-term capital without requiring land ownership. Secure your financing today and maximize the value of your leasehold investment.
The Benefits of Leasehold Financing
Leasehold financing enables businesses to access capital by leveraging the value of their long-term lease agreements. This is especially useful for companies operating in high-demand commercial spaces where the lease itself carries significant financial value. By using the leasehold interest as collateral, businesses can secure funds for renovations, expansions, equipment upgrades, or working capital without needing to own the property. It provides flexible financing terms, preserves cash flow, and helps companies maximize the benefits of their leased locations.
- Ideal for businesses operating on leased land
- Finance leasehold improvements, construction, and property build-outs
- Leverage long-term leases or rental income as collateral
- Long-term financing options up to 30 years
- Preserve ownership structure without purchasing the land
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Collateral Options
Leasehold financing can be secured by:
- Leasehold interest in the property
- Buildings or improvements located on leased land
- Income stream from the lease (e.g., subtenant or commercial tenant income)
- Lease structure, such as bondable or triple-net (NNN) leases, where tenants cover taxes, insurance, and maintenance
The security focuses on the leasehold value, not the fee-simple land ownership.
How We Work. Our Mission & Values
At Faster Funding, we’re committed to helping businesses of all sizes succeed. Our Leasehold Financing programs are just one of the many ways we’re working to make that happen.
To learn more about leasehold financing or to apply for other types of funding, please contact us. Our team of experts is standing by to help you find the perfect lending solution for your business.
Faster Funding is Here to Help
Frequently Asked Questions
We understand you are probably wondering how this all works. Here are some key topics to help you make informed decisions to unlock your business’s growth opportunities.
Can I get financing if I don’t own the land?
Yes. Leasehold financing is specifically designed for situations where the borrower leases the land but owns the improvements.
What types of businesses use leasehold financing?
Restaurants, hotels, gas stations, retail stores, franchise operators, office tenants, and businesses on government-leased or municipality-owned land.
What if the lease is short-term?
Most lenders require long-term leases, often 20+ years remaining, to ensure repayment feasibility.
Is the tenant’s credit important?
Yes. A strong, creditworthy tenant (or subtenant) significantly increases approval odds and improves loan terms.
Get Started
Contact us to learn more about our leasehold financing programs. Our team of experts is standing by to help you find the perfect financial solution for your business.
