Business Commercial Loan

A business commercial loan is normally different than a real estate loan. If you are looking for a line of credit with the local bank you do business with, you can approach them about lending you money for operating costs or expansion or even capital equipment purchases. Normally, you pledge assets in the way of inventory, accounts receivable, and you give the bank a security agreement by way of a UCC lien. This type of loan is not a real estate loan.

Real estate is normally the collateral when you are trying to fund a loan for a building or investment property. Normally, if you go to a bank, they will want to know that you occupy at minimum 51% of the property and that your business balance sheet will support the loan payments.