A Commercial Loan is a debt-based funding arrangement between a Business and a Financial Institution, typically used to fund major Capital Expenditures and cover operational costs that the company may otherwise be unable to afford.
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 smaller supplies that are used in the production and manufacturing process. SME Loans, CC Limits, Trade Finance & ECB are some of the types of business loans.