Understanding Commercial Loans: A Comprehensive Guide – Co/LAB Lending

Understanding Commercial Loans

Tips for understanding and successfully acquiring commercial loans

Loans make millions of purchases like dream homes and new cars possible each year. They can make a huge difference for small businesses looking to expand their operations and move up to a new level of service and products. Businesses typically seek a type of loan called a commercial loan. A commercial loan requires a business to enter into an agreement with a lender (e.g. a bank or a mortgage broker) to receive funds and then repay them within an agreed timeframe. These types of loans are frequently used for capital expenditures or other operational costs that a business can’t afford on its income alone. But how do commercial loans work?

A commercial loan can be a lifeline for a small business, but did you know that 50% of business owners and real estate investors are denied, turned away, or not even approved for the amount of financing that they’re seeking from local lenders?

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