Commercial finance
In the United States, commercial finance is the function of offering loans to businesses. Commercial financing is generally offered by a bank or other commercial lender. Most commercial banks offer commercial financing, and the loans are either secured by business assets or alternatively can be unsecured, where the lender relies on the cash flows of the business to repay the facility.
Assets used to collateralize commercial finance loans include:
- Real estate
- Receivables from invoices
- Equipment or supplies
Businesses can also seek the assistance of Commercial finance advisors in the structuring and sourcing of commercial finance. These are known as Independent Financial Advisers or Commercial Finance Brokers.