In the United States, commercial finance is a function of offering loans to businesses. Commercial financing is generally offered by banks or other lenders. Most commercial banks offer commercial financing, and loans are secured by unsecured business or alternative assets, in which the lender relies on the cash flow of the business to repay the facility.
Assets used to combine commercial financial loans include:
- Real Estate
- Receivables from invoice
- Equipment or supplies
While qualifying for financing is generally easier for large and well established companies, some small businesses can qualify for commercial financing from the Small Business Administration (SBA). SBAs can provide financing or guarantee lenders that take risks on smaller companies to provide commercial financing.
Businesses may also seek Commercial advisory financial assistance in structuring and commercial funding sources. This is known as an Independent Financial Advisor or a Commercial Finance Broker.
Video Commercial finance
See also
- Finance
Maps Commercial finance
References
Source of the article : Wikipedia
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