Definitions

commercial finance company

Commercial finance

In the United States, commercial finance is the function of offering loans to businesses. Commercial financing is generally offered by a bank or other lender. Most commercial banks offer commercial financing, and the loans are either secured by business assets or alternatively can be unsecured, where the lender relies of the cash flows of the business to repay the facility.

Assets used to collatoralize commercial finance loans include:

  • Real Estate
  • Receivables from invoices
  • Equipment or supplies

While qualifying for financing is generally easier for large, well established companies, some small businesses can qualify for commercial financing from the Small Business Administration (SBA). The SBA may provide either financing or insure a lender who takes a risk on a smaller company to provide commercial finance.

Businesses can also seek the assistance of Commercial finance advisors in the structuring and sourcing of commercial finance.

References

See also

Finance

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