A Commercial Loans is a loan that is extended to businesses by a financial institution. Commercial Loanss are generally used to purchase long-term assets or to help fund day-to-day operational costs.
It is unfeasible for small and mid-sized businesses to access equity and bond markets for financing due to regulatory hurdles, associated costs, and the time required to secure the funds. Therefore, small and mid-sized enterprises use debt products such as Commercial Loanss and/or lines of credit.