What is a Commercial Loan?
A commercial loan is a large, long-term loan that can be used for a number of purposes, including buying equipment, hiring staff or purchasing commercial property.
Why choose a Commercial Loan?
If you’re starting a new business, buying an established business, purchasing a franchised business, looking to expand or to buy commercial premises for occupation or investment – chances are you’ll need extra cash to do it with.
What is a Business Loan?
In a nutshell, a business loan:
· Is money you borrow from a bank or financial institution
· Helps you start a business
· Comes with either a fixed or variable interest rate
· Can be secured or unsecured
Why take out a Business Loan?
These different financing options are used to support different aspects of the business. A business loan is often used to support working capital (or the business expenses) and can contribute to a business’s goodwill – the difference between a company’s total value and the value of its assets.
When putting together your business plan, you need to set a budget for all predicted expenses – try our free business calculator. If you want to avoid investing all your own savings, and are unable to find other investors, a business loan is a simple way of raising the necessary capital to start your business venture.
You might also choose to take out a loan, instead of getting investors, as it gives you total control over the business and its finances.
Here are some options to explore: