Commercial Loans

Commercial loans for your business can help you get out of the red and into the black--or off the drawing board. Also known as a business loan or a commercial and industrial (C and I) loan, these loans are important both to the banking industry and the business sector. For businesses, commercial loans are a crucial source of funding for small sole proprietorships as well as large conglomerations, making up more than ten percent of their liabilities.

For the banking community, commercial loans are similarly important. These loans account for about one-fifth of all bank assets. Business loans from other sources, such as hard money lenders, are not nearly as common, as banks offer much better rates. Neither businesses nor banks could function well without C and I loans.

Commercial Loans Get Your Business Moving

Aside from personal savings, banks are the main source of funding for new businesses or financial ventures. However, you will have to be prepared when applying for a loan. Knowing exactly what you need and having the answers to what the bank or lender will ask you will make the loan process easier, quicker, and more successful.

For example, know ahead of time how much money you will need. A typical commercial loan for real estate is on a short-term basis; how long will you need the loan--and how will you spend it? Most importantly, how (and under what terms) will you repay the loan?