--- title: Commercial Loans and Fun Blog | Revolver description: Revolver | George Blackburne, owner, offers insight into the commercial loans and mortgage industry in this Commercial Real Estate Loan Tips blog. --- [![c-loans-logo-2025](https://info.c-loans.com/hs-fs/hubfs/images/c-loans-logo-2025.png?width=183&height=86&name=c-loans-logo-2025.png)](https://c-loans.com) [Terms of Use](https://www.c-loans.com/terms-of-use) | [Disclaimer](https://www.c-loans.com/disclaimer) | [Blog](https://info.c-loans.com/) # Commercial Loans and Fun Blog ## [What is a Revolver in Commercial Real Estate Finance (CREF)?](https://info.c-loans.com/what-is-a-revolver-in-commercial-real-estate-finance-cref) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Thu, Jan 16, 2025 - [Tweet](https://twitter.com/share)   The other day on LinkedIn, a big commercial construction lender posted a *tombstone* announcing the closing of a whopping $60 million revolver.  Revolver?  What on Earth is a revolver? A *revolver* is revolving line of credit that allows the borrower to borrow some dough, pay interest on it a for a few months, pay it off, allow the line of credit to rest for six weeks, borrow some more money, pay half of it back, paying interest on the outstanding balance monthly, and then pay off the remaining balance in full. A revolver has other names - a *revolving credit facility*, an operating line, or a bank line.   [![Free Book, "How To Invest in 12% First Trust Deeds"](https://no-cache.hubspot.com/cta/default/37671/23901fd2-646a-4871-be41-d3adcf3c588f.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/23901fd2-646a-4871-be41-d3adcf3c588f)   ![Screen Shot 2025-01-13 at 4.28.42 PM](https://info.c-loans.com/hs-fs/hubfs/Screen%20Shot%202025-01-13%20at%204.28.42%20PM.png?width=374&height=366&name=Screen%20Shot%202025-01-13%20at%204.28.42%20PM.png)   [![Submit Your Loan to 750 Commercial Lenders Using C-Loans.com.  It's Free!](https://no-cache.hubspot.com/cta/default/37671/dcd11210-cbb0-42bd-b761-d0cb0da003c9.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/dcd11210-cbb0-42bd-b761-d0cb0da003c9)   What separates revolving debt from regular installment loans?  In a regular loan, the borrower is given immediate access to a fixed sum of money, that must then be amortized and paid off over the loan term. For example, a borrower might have been lent $100,000 by a bank to start a business. The term of the loan is two years, and the borrower is required to pay the $100,000 plus interest back over this period. In revolver debt, the borrower is instead given a line of credit with a maximum limit. The borrower can access any amount up to this limit at any time and does not have a specific term within which to pay the loan back; however, interest will accrue on any outstanding funds borrowed.   [![Apply For a Commercial Loan to Blackburne & Sons](https://no-cache.hubspot.com/cta/default/37671/f812ad53-89c3-4144-a4df-ad234d211527.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/f812ad53-89c3-4144-a4df-ad234d211527)   ![Latex head](https://info.c-loans.com/hs-fs/hubfs/Latex%20head.png?width=341&height=482&name=Latex%20head.png)   [![How To Market For Commercial Loans  Video Course ](https://no-cache.hubspot.com/cta/default/37671/31b3aab7-d992-4293-81e6-ba38a950a89d.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/31b3aab7-d992-4293-81e6-ba38a950a89d)   In revolver debt, the borrower can re-access any funds that have been paid back. In installment loans, once the loan has been repaid, the borrower must reapply for a second loan if he or she wishes to borrow more. In revolver debt, there may not be a fixed payment value or term. In installment loans, the interest and principal payments are fixed. Revolver debt will usually come with higher interest rates than installment loans, due to the greater uncertainty regarding repayment.   [![Nine-Hour Video Training Course How to Broker Commercial Loans](https://no-cache.hubspot.com/cta/default/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f)   ![Color spider](https://info.c-loans.com/hs-fs/hubfs/Color%20spider.png?width=373&height=312&name=Color%20spider.png)   [![Free Commercial Loan Calculator](https://no-cache.hubspot.com/cta/default/37671/5b0c8bf1-9bfc-45f5-a950-b60a0346e9c1.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/5b0c8bf1-9bfc-45f5-a950-b60a0346e9c1)   To commence the revolving credit facility, a bank may charge a commitment fee. It compensates the lender for keeping open access to a potential loan, where interest payments are only activated when the revolver is drawn on. The actual fee can either be a flat fee or a fixed percentage. Several years ago, George Smith Partners posted a similar tombstone for a big revolver: "George Smith Partners placed a structured senior and collateralized line of credit revolver in a cash-out execution for a business in Los Angeles. The first loan was structured to be self-liquidating over 15 years with a fixed rate of 3.90%. The $1,000,000 second trust deed is a true revolver that can be used as a checkbook and has no limitations on uses."   [![Free Commercial Loan Software](https://no-cache.hubspot.com/cta/default/37671/f8924837-4c27-4eb1-a5d8-c49f9b09d9e8.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/f8924837-4c27-4eb1-a5d8-c49f9b09d9e8)   ![Screen Shot 2023-12-25 at 3.41.41 PM](https://info.c-loans.com/hs-fs/hubfs/Screen%20Shot%202023-12-25%20at%203.41.41%20PM.png?width=404&height=509&name=Screen%20Shot%202023-12-25%20at%203.41.41%20PM.png)   [![Banks and Credit Unions: Get 200 Free SBA Loan Leads](https://no-cache.hubspot.com/cta/default/37671/ac84f910-4343-4296-ac20-d048ecdbed3b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/ac84f910-4343-4296-ac20-d048ecdbed3b)   "This particular revolver had no *utilization fee*.  In other words, the borrower does not pay a fee each time that he draws down on his line of credit." "There was no *annual clean-up* for funds outstanding over 12 months either.  Bank regulators require that unsecured lines of credit to be rested (paid down to zero) for at least thirty days every year." "In this case, because the revolver was well-secured by commercial real estate, the bank did not require an annual clean-up."   [![Free Commercial Loan Placement Kit](https://no-cache.hubspot.com/cta/default/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a)   ![Screen Shot 2022-12-28 at 9.20.43 AM](https://info.c-loans.com/hs-fs/hubfs/Screen%20Shot%202022-12-28%20at%209.20.43%20AM.png?width=383&height=369&name=Screen%20Shot%202022-12-28%20at%209.20.43%20AM.png)   [![Follow George on X (Twitter) Hit the Follow Button Next](https://no-cache.hubspot.com/cta/default/37671/8ece6f95-5245-4c5e-af9a-b1a255850a22.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/8ece6f95-5245-4c5e-af9a-b1a255850a22)   So where do you go to get a revolver on commercial real estate.  Commercial banks are the usual issuers of revolving lines of credit. But folks, revolvers secured by real estate are very rare.  They are reserved for commercial real estate loans of least $5 million, and they are only made to VERY high net worth borrowers.  Mere mortals need not apply.   [![Earn 11% to 12% Interest Since 1980](https://no-cache.hubspot.com/cta/default/37671/80333ce3-b6a5-4bf7-9687-52c156ed5457.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/80333ce3-b6a5-4bf7-9687-52c156ed5457) He was *terrifying* in his time. ![Screen Shot 2025-01-16 at 1.41.39 PM](https://info.c-loans.com/hs-fs/hubfs/Screen%20Shot%202025-01-16%20at%201.41.39%20PM.png?width=392&height=260&name=Screen%20Shot%202025-01-16%20at%201.41.39%20PM.png)   [![Subscribe to the Commercial Loans and Fun Blog](https://no-cache.hubspot.com/cta/default/37671/a3bd32c3-bff3-4066-9ca8-2ec475fb5bbc.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/a3bd32c3-bff3-4066-9ca8-2ec475fb5bbc)   0 Comments [Click here to read/write comments](https://info.c-loans.com/what-is-a-revolver-in-commercial-real-estate-finance-cref#comments-listing) Topics: [Revolver](https://info.c-loans.com/topic/revolver) ## [Commercial Loans and Revolvers](https://info.c-loans.com/commercial-loans-and-revolvers) Posted by [George Blackburne](https://info.c-loans.com/author/george-blackburne) on Thu, Mar 5, 2020 - [Tweet](https://twitter.com/share) ![Line of credit](https://info.c-loans.com/hs-fs/hubfs/Line%20of%20credit.jpg?width=146&name=Line%20of%20credit.jpg)A great many residential lenders make revolving lines of credit (home equity loans) on owner-occupied homes; so it it natural for lots of commercial loan brokers to ask if their investor clients can get a a line of credit, secured by an apartment building or an office building.   [![Earn 11% to 12% Interest Since 1980](https://no-cache.hubspot.com/cta/default/37671/80333ce3-b6a5-4bf7-9687-52c156ed5457.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/80333ce3-b6a5-4bf7-9687-52c156ed5457)   ![Bra Mask](https://info.c-loans.com/hs-fs/hubfs/Bra%20Mask.png?width=371&name=Bra%20Mask.png)   [![Apply For a Commercial Loan to Blackburne & Sons](https://no-cache.hubspot.com/cta/default/37671/34e9010d-6f3b-4979-93c2-9e705da5a9fc.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/34e9010d-6f3b-4979-93c2-9e705da5a9fc)   As a general rule, the answer is, "No."  Commercial real estate lenders do not make lines of credit secured by investment real estate estate.  At least I have never seen or heard of it done in my 43 years in the commercial loan business. Therefore, I was quite surprised to receive a newsletter from the fine folks at George Smith Partners - one of the oldest commercial mortgage banking firms in the country - that contained the following tombstone: "George Smith Partners placed a structured senior and collateralized line of credit revolver in a cash-out execution for a business in Los Angeles. The first loan was structured to be self-liquidating over 15 years with a fixed rate of 3.90%. The $1,000,000 second trust deed is a true revolver that can be used as a check-book and has no limitations on uses."   [![Free Commercial Loan Software](https://no-cache.hubspot.com/cta/default/37671/f8924837-4c27-4eb1-a5d8-c49f9b09d9e8.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/f8924837-4c27-4eb1-a5d8-c49f9b09d9e8)   ![](https://info.c-loans.com/hubfs/Puppy%20Rescue.gif) This courageous border collie only charges $600 to re-wire your house. [![Free Commercial Loan Placement Kit](https://no-cache.hubspot.com/cta/default/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/882eb54a-a8b4-4c38-a2ed-605338b6f07a)   "The second loan is priced at 3.75% (Prime minus 1%).  Funds may be drawn down, re-paid and re-drawn without additional bank approval.  There is no non-utilization fee.  As the credit line is collateralized, there is no mandatory “clean-up” for funds outstanding over 12 months." A ***revolver*** is revolving line of credit that allows the borrower to borrow some dough, pay interest on it a for a few months, pay it off, allow the line of credit to rest for six weeks, borrow some more money, pay half of it back, paying interest on the outstanding balance monthly, and then pay off the remaining balance in full. This particular revolver had no ***utilization fee***.  In other words, the borrower does not pay a fee each time that he draws down on his line of credit.   [![Submit Your Loan to 750 Commercial Lenders Using C-Loans.com.  It's Free!](https://no-cache.hubspot.com/cta/default/37671/9f0b2bed-fb9b-455d-b8be-17d8f7960a2a.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/9f0b2bed-fb9b-455d-b8be-17d8f7960a2a)   ![Purell](https://info.c-loans.com/hs-fs/hubfs/Purell.png?width=330&name=Purell.png)   [![Free List of 3,159 Commercial Lenders Sort By Your Own Criteria](https://no-cache.hubspot.com/cta/default/37671/edc33fe8-9d87-477b-bf2f-07a33d3d2d24.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/edc33fe8-9d87-477b-bf2f-07a33d3d2d24)   There was no ***annual clean-up*** for funds outstanding over 12 months either.  Bank regulators require that unsecured lines of credit to be ***rested*** (paid down to zero) for at least thirty days every year. In this case, because the revolver was well-secured by commercial real estate, the bank did not require an annual clean-up. So where do you go to get a revolver on commercial real estate?  I dunno.  Until recently, I would have sworn that such lines of credit, secured by commercial real estate, were never made.     [![Nine-Hour Video Training Course How to Broker Commercial Loans](https://no-cache.hubspot.com/cta/default/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/2fa994cb-f6ac-4671-821f-b4bd48cb5f1f)   ![](https://info.c-loans.com/hubfs/Fish%20Wrestle-1.gif)   [![Earn HUGE Loan Servicing Fees Become a Hard Money Lender](https://no-cache.hubspot.com/cta/default/37671/74fdb03f-7abe-49b4-a8bb-0b402da5f977.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/74fdb03f-7abe-49b4-a8bb-0b402da5f977)   [![Get Both Video Training Programs For Just $849.](https://no-cache.hubspot.com/cta/default/37671/d0fb44bc-2893-4551-8a92-6a5080c4296e.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/d0fb44bc-2893-4551-8a92-6a5080c4296e)   Apparently, however, such revolvers are occasionally being made.  But then some people swear there is a Santa Claus, and I have never seen him either.  Folks, revolvers are very, very, VERY rare; and they are no doubt reserved for commercial loans of least $5 million, made to borrowers with almost as much dough as Michael Bloomberg, who apparently is $500 million poorer these days.  *Haha!* I am going to try to slip two cute GIF's into this blog article.  They probably won't work.  So if you see a strange picture just sitting in this article, with no funny text, it will because my attempt to insert a GIF failed.   [![Free List of 200 Commercial Lenders](https://no-cache.hubspot.com/cta/default/37671/3da67ca8-0ae4-4537-a365-87388c9287a1.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/3da67ca8-0ae4-4537-a365-87388c9287a1)   ![Lost Hour](https://info.c-loans.com/hs-fs/hubfs/Lost%20Hour.png?width=394&name=Lost%20Hour.png)   [![Banks and Credit Unions: Get 200 Free SBA Loan Leads](https://no-cache.hubspot.com/cta/default/37671/eb103ba9-3328-470e-bdda-e29c55be2881.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/eb103ba9-3328-470e-bdda-e29c55be2881)   [![Subscribe To Blog](https://no-cache.hubspot.com/cta/default/37671/7636800d-cf5e-48c6-88cb-f71c131eb6ee.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/7636800d-cf5e-48c6-88cb-f71c131eb6ee)     0 Comments [Click here to read/write comments](https://info.c-loans.com/commercial-loans-and-revolvers#comments-listing) Topics: [Revolver](https://info.c-loans.com/topic/revolver) [All posts](https://info.c-loans.com/all) ### George Blackburne III Owner of C-Loans, Inc. ![George Blackburne III C-Loans Owner](https://info.c-loans.com/hs-fs/hubfs/George%20Head%20Shot%20Small%205%20by%207%20copy.jpg?width=158&name=George%20Head%20Shot%20Small%205%20by%207%20copy.jpg) ### Subscribe via E-mail ### Connect with C-Loans ## [![Get the Latest Scoop on C-Loans Inc.](https://no-cache.hubspot.com/cta/default/37671/bacfb58b-143e-40d7-b126-33c182b5b90b.png)](https://cta-redirect.hubspot.com/cta/redirect/37671/bacfb58b-143e-40d7-b126-33c182b5b90b) C-Loans.com® is sponsored by  C-Loans, Inc. — For more information, contact Tom Blackburne 555 University Ave., Suite 150, Sacramento, CA 95825 Telephone: (916) 338-3232 x 317 * Tom Blackburne in Indiana: (574) 210-6686 * Fax: (916) 338-2328 Real Estate Broker -- California Department of Real Estate -- License Number 01330173 Arizona Dept. of Financial Institutions – License Number 0909472 The Florida Mortgage Brokers License Number: 0708758 [Read our many client Success Stories](https://c-loans.com/mortgage-brokers-overview/success-stories/) » © 2025 C-Loans, Inc. 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