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 usually secured by business
assets. Assets used to collatoralize commercial
finance loans include:
-
Housing or
Buildings
-
Income due 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 main banks or companies who specialise
in this service. They may negotiate with a
lender who takes a risk on a smaller company to
provide commercial finance but always check the
rates offered.