commercial loan
Corporate debt instrument
A commercial loan is money borrowed by a business rather than an individual, typically from a bank or financial institution.
These loans fund operations, expansion, equipment purchases, or real estate acquisition: The company secured a commercial loan to build a new warehouse.
Terms, rates, and collateral requirements differ substantially from consumer lending.
One who loans money
- borrowerOne who takes temporarily
- guarantorOne pledging another's obligation
- underwriterOne who assumes financial risk
- creditorOne owed money
co-signer · bank · credit union · lending institution · credit analyst · relationship manager
Reusable loan with limit
- credit linePre-approved borrowing limit
- balloon paymentLarge final loan installment
- amortizationGradual debt reduction schedule
- principalChief school administrator
interest rate · fixed rate · variable rate · maturity · installment · repayment schedule · covenant · prepayment penalty
Ability to repay debts
- collateralSecurity for debt
- defaultPreset standard option
- foreclosureLender seizes mortgaged property
- lienClaim securing debt
delinquency · credit score · due diligence · financial statements · cash flow · debt-to-income · risk assessment · charge-off
Assets minus current liabilities
- real estateLand and its structures
- expansionIncrease in scope
- inventoryCatalog of held assets
- acquisitionAct of obtaining something
lender
One who loans money
- borrowerOne who takes temporarily
- guarantorOne pledging another's obligation
- underwriterOne who assumes financial risk
creditor · co-signer · bank · credit union · lending institution · credit analyst · relationship manager
revolving credit
Reusable loan with limit
- credit linePre-approved borrowing limit
- balloon paymentLarge final loan installment
- amortizationGradual debt reduction schedule
principal · interest rate · fixed rate · variable rate · maturity · installment · repayment schedule · covenant · prepayment penalty · drawdown
creditworthiness
Ability to repay debts
- collateralSecurity for debt
- defaultPreset standard option
- foreclosureLender seizes mortgaged property
lien · delinquency · credit score · due diligence · financial statements · cash flow · debt-to-income · risk assessment · charge-off · nonperforming
working capital
Assets minus current liabilities
- real estateLand and its structures
- expansionIncrease in scope
- inventoryCatalog of held assets
acquisition · accounts receivable · business growth · capital expenditure
- loanslend, borrow, borrower, lender, microloan
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- business debtcredit line, line of credit, accounts payable, balloon payment, corporate bond
- financial agreementscredit agreement, promissory note, line of credit, credit line, HELOC
- commercial propertiesoffice, storefront, retail space, warehouse, shopping mall
- creditcredit card, credit score, credit limit, credit cards, credit scores
commercial loanpersonal loan
Unsecured individual borrowing
residential mortgage · auto loan · student loan · credit card debt · payday loan
commercial loanequity investment
Acquiring ownership in business
venture capital · angel investment · private equity · retained earnings · crowdfunding
commercial, loan, commerce, commercials, commercially, commercialism, commercialize, commercialized, commercialization