WHAT IS A COMMERCIAL LOAN?
A commercial loan is a debt funding arrangement between a company and a financial institution, usually used to fund capital expenditures or helps in the business operational costs that they are unable to afford.
WHAT ARE THE TYPES OF COMMERCIAL LOANS?
Below are the types of commercial loans;
Bridge Loans: This is a short-term loan for your business or commercial property. The loan can range from five months to two years. In terms of interest, bridge loans are higher than permanent loans.
Permanent Loans: These are first mortgage loans on any commercial property or company that has an amortisation of five years in times of term. A permanent loan usually amortises after twenty-five years. These loans are made by credit unions, conduits, insurance companies, or banks.
Conduit Loans: These are large permanent loans given to a standard type of a commercial business or property. Conduit loans enjoy low given interest rates.
WHAT ARE THE BENEFITS OF COMMERCIAL LOANS?
Commercial loans are one of the most common ways in funding business operations. Acquiring commercial loans can bring certain advantages when applying for a loan. Below are some of the benefits of commercial loans: