commercial loan definition

commercial loan

Loan advanced to a business instead of to a consumer. Commercial loans are usually for a short-term (from 30 days to one year), secured (backed by a collateral) or unsecured, and are often advanced for financing equipment, machinery, or inventory. Banks usually require the commercial borrowers to submit monthly and annual financial statements, and to maintain insurance cover on the financed item.

commercial loan is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

commercial loan appears in the definitions of the following terms: collateral loan and credit union

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