commercial-loan

Vocabulary Word

Definition

A 'commercial loan' is a debt-based funding agreement, where a business borrows money from a lender to finance business operations or expansion. It can be long-term or short-term, based on the nature of the business needs.

Examples in Different Contexts

In real estate development, 'commercial loans' are critical for funding new construction projects. A developer might say, 'We've obtained a commercial loan to kickstart the construction of the new shopping center.'

Practice Scenarios

Tech

Scenario:

With the growth in the number of startups, there's a high demand for flexible finance options. We need to consider this in our product design.

Response:

Yes, I agree. Incorporating commercial loans in our fintech app could potentially meet that demand.

Consulting

Scenario:

Your business expansion looks promising. However, maintaining stable cash flow is crucial during this phase.

Response:

That's true. We've been weighing our options and considering a commercial loan to maintain liquidity during expansion.