Everything You Need To Know About Commercial Loans


Commercial loans are loans that the bank grants to different businesses. In some cases, these loans are used to help a company get a short term funding for operation expenses. Most common examples are meeting payroll needs, purchasing new supplies, buying of additional goods for manufacturing and many others. In other worlds, it is a debt-based funding between the bank and the business entity. To gather more awesome ideas on commercial loans, click here to get started.

Commercial loans are typically short term and fast which is a good choice for businesses. In some cases, bankers also offer what is known as renewable loan. This means the business can secure the necessary funds, repay the balance within a set number of terms, and then roll the loan into a second or renewed period. Having a commercial loan is a good way to start or make your business grow. Here’s  a good read about Commercial real estate lenders, check it out!

Who Offers Commercial Loans?

Commercial loans are offered by a number of different entities including banks, mutual companies, hard money lenders, private lending institutions, and other financial groups. Every potential borrower will be evaluated extensively by the loaner. Each institution will have varying standards, but most likely they will look consider what kind of business you do, the amount of the loan, and the collateral used. Commercial lenders have more lenient when it comes to qualifications compared to banks. As a matter of fact, some can quickly close your loan application, in as little as two weeks.

Different Types of Commercial Loans

There are different types of commercial loans which every business owner should know about. If you become familiar with the loan options you can easily choose which one is best for your business.

Accounts Receivable Loan

This is a type allow which will allow you to pay monthly operation expenses while you wait for payments from your customers. This loan is typically based on having credit worthy customers.

Long Term Loans

Long term loans will enable you to have a capital to cover for your business needs. These loans are usually funded all at once and then paid back over a specific length of time. Long term longs generally last anywhere between 5 – 15 years.

Equipment and Vehicle Loans

Your business can take such loans if you need items such as computers, heavy equipment, used or new trucks, vans, and other machinery. Repayment terms are typically dependent on the type and age of the collateral.

Real Estate Loans

If your business need to refinance, purchase, or construct an office, industrial, retail, medical or dental clinics, or warehouses, you may be qualified to apply for this loan. Your options include owner-occupied or income-producing financing, permanent financing or interim.

You may also opt for the fix and flip loans. Lenders will provide you cash to buy and renovate the property so you can resell it for a higher price. Kindly visit this website http://www.britannica.com/topic/commercial-transaction for more useful reference.


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