A Commercial Loan or small business asset finance is exactly that. It's a loan granted to a commercial organisation such as a limited business or self employed invidual.Commercial Loans are typically secured - that is the business or the owners of the business have to provide some security to the lender. A suitable security might be the property owned by the business or perhaps some other asset that has a defined and clearly understood value. The High Street Retail Banks are obviously one type of provider of Commercial Lender but there are others such as the Wholesale Banks who operate away from the normal public gaze. A Commercial Loan should not be confused with a Commercial Mortgage or with a normal business overdraft, instead a Commercial Loan is a sum of money borrow for some form of strategic business development purpose. In short its a strategic business loan to help your business grow.

A Commercial Cost requires repaid so what are the benefits?

1. A Commercial Loan lets you borrow a potentially large sum of money over say 10 years. Allowing you to plan.
   
2. As long as payments are maintained it provides a guaranteed source of funds unlike an overdraft which can be withdrawn by the bank.
   
3. If your business can afford the repayments it allows you to grow the business without necessarily selling equity in your business venture.

1. A Commercial Loan is structured debt so it provides your business with a mechanism to weather economic downturns.
   
2. In some cases it helps your business avoid bringing in external investors at too early a stage.
   
3. It reduces the reliance on your businesses on overdraft facilities - which can be reduced or removed with only the barest of notice by your bank
   
4. It provides a structured alternative to Invoice Discount (or Factoring) for businesses that cannot use such faciltiies (such as service, consultancy or software businesses).
   
5. You can choose from fixed or variable interest rates and agree the repayment period (sometimes even capital repayment holidays) allowing you to choose the correct type of facility for your business.

1. Companies who require working capital beyond agreeable overdraft facilities.
   
2. Companies who are unable or unwilling to bring in external investment.
   
3. Companies who require funds for a major expansion or capital expenditure program.
   
4. Companies who want to use value locked up in existing property or assets.
   
5. Companies who wish to plan with known financial resources in place. 

Review your circumstances:

• what finance facilities do you have in place
  
• what assets do you have today
  
• what financial obligation do you currently have

Plan:

• do you have a business plan,
  
• have you identified your cash flow requirements,
  
• have you identified a clear need for a Loan,
  
• can you show that you can pay it back