Commercial Loan

A commercial loan is a type of debt capital that can fund a range of transactions.  From business to commercial real estate, finding a commercial loan using CNF Exchange is an effective way to get funded.

A commercial loan is available from a wide range of financial institutions and individual investors. The funding they provide can be used for almost any legitimate business purpose; however, certain commercial loan arrangements are specifically intended for a defined range of purposes. For instance, mortgage loans for commercial business enterprises must be used for the purchase of real property, including facilities, factories, offices or land for construction. Collateral is generally required in order to obtain a loan for commercial business operations; that collateral may vary depending on the type of loan, the duration of the lending arrangement and the availability of items of sufficient value to secure the loan.

Lenders typically require that mortgage loans for commercial businesses be secured by the property to be acquired. Construction loans may require additional collateral during the building phase, but these loans are also secured by the resulting facility. Short-term accounts receivable loans use outstanding unpaid accounts from clients and customers as the source of collateral. Commercial equipment loans may be secured using existing buildings, financial resources and other valuable assets in the possession of the company. Large or expensive equipment may also be secured using the equipment itself; in this case, the loan is amortized over the expected useful life of the equipment in question. Unsecured commercial loans may also be available, but most loans for commercial businesses require at least some form of collateral in order to gain approval by traditional lending sources.

CNF Exchange offers lenders and borrowers an exclusive venue where they can connect for the benefit of both parties. Borrowers can present their funding requirements for commercial loans to lenders directly. At the same time, lenders gain access to a pool of qualified borrowers interested in their services and ready to commit to a loan agreement. This creates synergy and can lead to long-term financial relationships between borrowers and lenders through the CNF Exchange interface.