Commercial Loans

When you lend loan from any bank or finance company in order to solve commercial needs, say for example purchasing inventory or movement of goods, Commercial Loan gives the facility to solve this purpose.

How to get Commercial Loans:

The following Criteria are seen by the lender before involving their money in any business:

  • Convincing business plan
  • Future of the business
  • Business Credit score
  • Loan-to-value (LTV)
  • Debt recovery ability
  • Stick to on time repayment.

If the borrower fulfills those needs, then one can expect to get the loan easily.

Source of Commercial loans

Various finance company and banks have opened their door to facilitate loan for the commercial purpose, if the borrower fulfills their criteria properly. To name few of them are:

  • Bank of America Commercial Finance
  • Alaska Growth Capital
  • Capital Business Credit LLC®
  • Bank of California
  • Countrywide Financial Services or CFS
  • Countrywide Financial Corporation

Type of Commercial Loans:

You can find various types of Commercial Loans present in the market:

Commercial Mortgage Loans

In this type of loan, lender takes any commercial building or business house as collateral. So, it is not the loan for individual borrower, but it is given to any partnership, private limited company or incorporated business.

Interest Rate: Interest rate is higher than the residential mortgage.

For this loan, interest rate is of two types:

  • Rate can be fixed throughout the term. It is mainly depended on corporate bonds, treasuries, CMBS rate and swap.
  • Rate can be variable, and then it is based on an index called LIBOR.
Commercial Property Loans

When any lender finances any business to purchase any property exclusively for the business purpose, then this kind of a loan is considered as Commercial Property Loans.This loan is also used for expanding or growing business and even refinancing the existing debt.

Which properties do fall under this category of loan to be funded?

  • Shopping Mall
  • Multiplexes
  • Hotels, motels, resort and other kind of commercial lodging
  • Retail stores
  • Office Buildings
  • Automobile shop including dealership
  • Health care building
  • Manufacturing unit etc.
Commercial Construction Loans

While the loan is provided for the purpose of constructing any office building or retail center etc. for commercial purpose, then it is called Commercial Construction loans.

Factors for Commercial Construction Loans

Few criteria need to be fulfilled in order to avail this loan:

Profit test: Lender sees whether project has the strength to earn the profit more than the money required to construct that commercial building.

Loan-to-value: If after construction, your commercial building is fully occupied but lenders still want to see whether construction loan is lesser than loan-to- value.

Mezzanine loan: If say for example lenders allow for 80% of loan-to-value, but if the borrower still needs equity, mezzanine loan is available.

Commercial Vehicle Loans

Commercial Vehicle Loans: is ready for those borrowers who want to purchase any commercial vehicle like Light commercial vehicle or LCV, heavy commercial vehicle or HCV, trucks etc for their business purpose.

purpose of finance offered as Commercial Vehicle Loans

Commercial Vehicle loans are available for different types of funding:

  • Tyre funding
  • Engine Funding
  • Accidental funding
  • Take over loan


Feature of the loans

  • This loan is available for old or second hand vehicle also
  • The loan amount depends upon the condition and market value of the vehicle.
  • It provides loan for the vehicle even up to 15 years old
  • Financing can go up to 95% of the assessed value depending on the credit score of the borrower and asset they are depositing as collateral.
Commercial Truck Loans

Commercial Truck loans are available for the down payment of the purchasing Truck.

Loan Amount: One can avail the 100% finance even up to $25,000 for the borrower with improved credit history.

Variety of truck finance: Depending on the variety of trucks, financing for this vehicle also varies:

  • Commercial Truck financing
  • Semi truck financing
  • Heavy truck financing
  • Light truck financing
  • New truck loans
  • Old truck loans
  • Tow truck loans
  • Fleet truck financing
  • Used truck loans
  • Loan for first time truck buyer and many more

Small Commercial Loans

Small commercial loan is nothing but loan with smaller amount, SBA or Small Business Administration with the help of its Micro Loan program provides loan up to $ 35,000 for the business.

Criteria: Few criteria should be met before the lender provides you loan:

  • A well-prepared business plan
  • Business should be listed among 411 business directory
  • Borrower should have a business bank account.
  • Eligible business credit score.
Commercial Loan Melbourne

Depending upon the requirement of the business, various Banks and other financial organization provides commercial loan in Melbourne.

To name a few:

  • Wachovia
  • LendingTree
  • Nationwide Unsecured