A Business Purpose Loan is a form of financing issued strictly for investment, commercial, or business activities and never for personal, family, or household purposes. Under the California Financing Law (CFL), these loans are distinct from consumer loans and have specific compliance requirements.
Core Characteristics:
Not Consumer Credit – Cannot be used to purchase, refinance, or improve a personal residence.
Secured by Real Property – Always backed by investment or commercial real estate.
Borrower Type – Typically real estate investors, commercial property owners, or business entities.
Purpose – Acquisition, renovation, or refinancing of investment or commercial properties.
Examples of Acceptable Uses:
Buying an investment property to generate rental income.
Fix‑and‑flip property renovations for resale.
Commercial property refinancing.
Business expansion secured by real estate.
What is Not Allowed:
Buying or refinancing a primary residence.
Funding personal or household expenses.
Owner‑occupied residential lending.
Our Commitment to Compliance:
Xcel Funding LLC originates only business purpose loans. We do not provide consumer financing or owner‑occupied residential mortgages. Every loan we make is for investment or commercial purposes only and fully secured by real property.