Commercial Loan Explained
Commercial Loan is a type of financing for businesses to increase the working capital, acquire new machinery, build new infrastructure, meet operational costs and many more. Commercial Loans are usually short-term loans and can be both secured and unsecured in nature.
A businessman applying for a Commercial Loan needs to present financial documents of the entity, proof of the establishment, proof of business vintage, etc. We will also check the Credit score to understand the financial history of the business.
Loan term
The term of your commercial loan is typically determined by the security that you offer to us
Interest only
We will only allow this if you have a large deposit and a strong enough cashflow to make the larger repayments when the interest only period expires.
Other features include:
Paying the interest in advance
This is used in situations where your ability to repay the loan isn’t yet proven, yet you know you can provide the required paperwork within the next year.
Annual reviews
This allows us to work with customers that are experiencing financial difficulties. In reality, it means that they can pull the rug out from under you when you need them most by asking for additional security or for you to pay down the loan.
Personal guarantees
We may likely request for this depending on the situation. Our loan advisers will let us know the best course of action to take.