WHAT IS COMMERCIAL LOAN ?
A commercial loan is a debt-based funding arrangement between a business and a financial institution such as a bank. It is typically used to fund major capital expenditures and/or cover operational costs that the company may otherwise be unable to afford. Expensive upfront costs and regulatory hurdles often prevent small businesses from having direct access to bond and equity markets for financing. This means that, not unlike individual consumers, smaller businesses must rely on other lending products, such as lines of credit, , unsecured loans or term loans.
WHY CHOOSE US..?
Commercial loans are granted to a variety of business entities, usually to assist with short-term funding needs for operational costs or for the purchase of equipment to facilitate the operating process. In some instances, the loan may be extended to help the business meet more basic operational needs, such as funding for payroll or to purchase supplies used in the production and manufacturing process.
Benefits Of Commercial Loan
- Commercial loans can be categorized into;
- Short-term loans (less than 12 months),
- Medium-term loans (12 months to 36 months), and
- Long-term loans (more than 36 months).
Types of Commercial Loans
- Bank overdraft facility
- Term loans
- Letter of credit
- SME collateral-free loans
- Commercial Mortgage