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.
Commercial financing is the process of Lending money from individuals, banks or financial institutions for establishment of any business
Famous quotes containing the words commercial and/or finance:
“The home is a woman’s natural background.... From the beginning I tried to have the policy of the store reflect as nearly as it was possible in the commercial world, those standards of comfort and grace which are apparent in a lovely home.”
—Hortense Odlum (1892–?)
“There is an enormous chasm between the relatively rich and powerful people who make decisions in government, business, and finance and our poorer neighbors who must depend on these decisions to alleviate the problems caused by their lack of power and influence.”
—Jimmy Carter (James Earl Carter, Jr.)