A property-backed loan for businesses is a loan secured by a mortgage on real estate, which a company can use for property development, land purchase, infrastructure construction, or bridge financing. Unlike traditional bank lending, Estateguru funds projects quickly and covers stages that banks typically do not finance.
What is a property-backed loan for businesses?
A property-backed business loan is a loan secured by a mortgage registered against real estate. If the borrower fails to make repayments, the mortgage gives the right to initiate enforcement proceedings against the collateral.
Through the Estateguru platform, property developers and SMEs raise financing from thousands of investors at once. This differs from traditional bank lending: a bank is a single lender, while through Estateguru the loan is funded by thousands of investors. The borrower communicates solely with Estateguru throughout the entire process.
Estateguru is a regulated crowdfunding service provider, operating under an ECSPR licence issued by Estonia’s Financial Supervision Authority, which requires adherence to EU-wide standards for investor protection and transparency.
How does Estateguru’s loan differ from a bank mortgage?
In both cases, the loan is secured by a mortgage registered against real estate. The key differences are process speed, scope of financing, and flexibility.
| Estateguru | Bank mortgage loan | |
| Loan term | 12–18 months | Typically 3–20 years |
| Time to decision | 24-48 hours | Weeks to months |
| Stages financed | Land purchase, infrastructure, development, bridge | Primarily completed or high-value collateral |
| Early repayment | Permitted, no penalties | Often subject to penalties |
| Application process | Digital, streamlined | Extensive documentation |
| Maximum LTV | Up to 75% | Varies by bank and project |
The most significant practical difference is the scope of financing. Banks often avoid early project stages where the collateral has not yet reached its full development potential. Estateguru specialises in exactly these stages.
“Crowdfunding has enabled us to reach a broader investor base that shares our vision and believes in what we are building. It also allows us to finance critical phases of development – such as land purchases and infrastructure works – that traditional banks often do not support. Given our growth strategy, we certainly plan to continue working with Estateguru in the future.”
Janar Muttik, Founder and CEO of Everaus Kinnisvara
When is this the right solution?
An Estateguru property-backed loan is well suited to a business that:
- is purchasing development land before obtaining a building permit
- needs bridge financing while a long-term bank loan is being confirmed
- is funding construction stages that a bank will not cover
- wants to release capital tied up in completed units to fund a new project
It is not suitable for private individuals seeking a home loan, for companies looking for unsecured financing, or as a long-term financing solution beyond 18 months.
What collateral is accepted?
The LTV ratio (loan amount as a percentage of collateral value) is up to 75%. The collateral does not have to be the property being developed: additional collateral is also accepted. This gives developers the flexibility to use existing assets to finance a new project, without waiting for the development property to be valued.
The collateral property is valued by an independent qualified expert. Estateguru reviews the valuer’s findings as part of its credit assessment process.
Key loan terms
| Loan term | 12–18 months |
| Maximum LTV | Up to 75% |
| Collateral | Real estate, including additional collateral |
| Early repayment | Permitted, no penalties |
| Indicative decision | Within 24-48 hours |
| Application channel | Online form |
How does the application process work?
- Application and analysis
Fill out the application form in as much detail as possible, or contact us directly at loans@estateguru.co. Our risk team will review the application and send a non-binding indicative offer within 24-48 hours. - Agreement and preparation
If the indicative offer meets your expectations, a loan manager will begin preparing the project on the platform. You will receive a final binding contract, sign it, and the project will then be published to investors. Depending on the loan size, funding can happen within days. - Funding and disbursement
Once the project reaches its funding target, a notary appointment is scheduled to sign the mortgage agreement. After the mortgage is signed, the funds are transferred to borrower’s bank account. You repay the loan according to the agreed schedule. Early repayment is permitted with no penalties.
Businesses that have raised property-backed loans through Estateguru
Everaus Kinnisvara: €954,000 for land purchase in Rae municipality
Property developer Everaus Kinnisvara raised €954,000 to purchase plots for a planned residential quarter in Rae municipality. 4,218 investors funded the full loan amount in just three business days. The 18-month loan offered investors an expected return of 11.5% per annum. The developer acquired a 60,000 square metre land area, comprising 26 residential plots, for a planned residential quarter 7.5 kilometres from Tallinn city centre.
Miston Capital: €4.4 million for the Vagabondi Lofts development in Pärnu
The conversion of a 150-year-old brick warehouse in Pärnu into luxury loft apartments was funded by nearly 10,000 investors from 75 countries, raising €4.4 million through Estateguru. The completed project delivered 44 new loft-style apartments and commercial spaces.
“Raising funds through the platform gave us flexibility, speed, and the opportunity to access resources without lengthy or complicated processes. Estateguru has a professional team and strong experience with similar developments, which gave us confidence.”
Rauno Loonurm, CEO of Miston Capital
Frequently asked questions
Can a property-backed loan be used for land purchase?
Yes. This is one of the most common use cases. Many banks avoid financing land purchases at an early project stage before a building permit has been obtained. Estateguru specialises in precisely these stages, provided the LTV ratio remains within the 75% threshold.
What fees apply?
Exact fees depend on the specific project terms. A full fee schedule is available on Estateguru’s pricing page. Notary fees for registering the mortgage are paid by the borrower.
Is early repayment permitted?
Yes, with no penalties or additional fees. Give Estateguru at least three business days’ notice.
How long does the full process take from application to disbursement?
An indicative decision is typically reached within 24-48 hours. The time to full funding depends on the loan size. Smaller projects are often fully subscribed within days. The notary appointment for signing the mortgage is scheduled after the funding target has been reached.
Does the collateral have to be the property being developed?
No. Additional collateral in the form of other real estate is also accepted. This allows a developer to use existing assets to secure financing for a new project, without needing to wait for the development property itself to be valued.
