Commercial loans are typically designed to serve four main purposes. These are:
- Acquisition of Property or Assets – Financing the purchase of commercial real estate (office buildings, warehouses, retail spaces) or major business equipment.
- Working Capital – Providing funds to cover day-to-day operational expenses like payroll, inventory, and utilities, helping businesses maintain cash flow.
- Business Expansion or Growth – Financing projects such as opening new locations, renovating facilities, or launching new product lines.
- Refinancing or Debt Consolidation – Allowing businesses to refinance existing loans to get better terms, lower interest rates, or consolidate multiple debts into a single loan.
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What is meant by commercial loan?
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