- A loan made out to a business or organization. A business may take out a commercial loan to finance large expenditures or any operations the business lacks the capital to do. Commercial loans can include term loans, unsecured loans, and lines of credit.
business loan, corporate financing, company loan, business financing
Related Terms and Acronyms
- Business Interest Expense — Definition,
- Interest acquired in business operations can be deducted as a business expense.
- Draw Mortgage (DM) — Acronym,
➥ See Progress Advance Mortgage (PAM).
- A periodic payment made to a construction contractor or subcontractor as work progresses. A draw is part of a construction mortgage.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Operating Loan — Definition,
- A loan intended for short-term financing, supplying cash flow support or to cover day-to-day operating expenses.
- Self Employed Person (SEP) — Acronym,
- A person who runs a trade or business, rather than working as an employee for someone else. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside your regular employee hours. To qualify for many business tax exclusions and deductions, the enterprise must make a profit in three of five years. In most cases in order to qualify you must take and average of the last 2-3 years tax assessments.
- Small- and Medium-sized Enterprises (SMEs) — Abbreviation,
➥ A term widely used by the World Bank and the World Trade Organization (WTO).
- Limits banks place on businesses to determine there size.
- Sole Proprietorship — Definition,
- A business owned by an individual where no legal distinction is made between the business and the owner.
- Takeout Mortgage Loan — Definition, Important,
- A long term mortgage loan that is advanced to borrower on completion of construction or in compliance with any other conditions in the loan commitment. The funds are normally used to pay off or take out the construction lender.