commercial loan

Thân thiện

A business owner reviews a commercial loan document at a desk.

Definition

1. Noun:
   • A bank loan granted for the use of a business: A sum of money borrowed by a company from a financial institution, typically for business purposes such as purchasing inventory, funding operations, or expanding facilities. It is a formal debt arrangement with specified repayment terms and interest.

Usage

• Noun:
  • The company secured a commercial loan to finance the construction of its new warehouse.
  • To qualify for a commercial loan, the business had to present a detailed financial plan.
  • The terms of the commercial loan included a variable interest rate and a five-year repayment period.

Advanced Usage

• "to take out a commercial loan": to formally obtain a commercial loan from a lender.
  • The startup took out a commercial loan to cover its initial operating costs.
• "commercial loan underwriting": the process a lender uses to assess the risk of granting a commercial loan.
  • The bank's strict commercial loan underwriting delayed the approval process.

Variants and Related Words

• Business loan (n): A synonym for commercial loan, money lent specifically for business use.
  • They applied for a business loan to upgrade their equipment.
• Commercial lender (n): A financial institution that provides commercial loans.
  • We are meeting with several commercial lenders to compare rates.

Synonyms

• Business credit: Financing extended to a company.
• Corporate loan: A loan made to a corporation.

Related Phrases

• Loan agreement: The formal contract detailing the terms of a commercial loan.
  • The lawyers reviewed the commercial loan agreement carefully before signing.
• Loan principal: The original sum of money borrowed in a commercial loan, not including interest.
  • The first payments will go mostly toward interest, not reducing the loan principal.

Học thuật

Noun

1. a bank loan granted for the use of a business

Từ đồng nghĩa

• business loan