Commercial Credit

A way for companies to smooth out the bumps in their business cycles. A bank will provide a company with commercial credit: money the firm can access at any time. It works like a line of credit. The company gets approved for some amount of credit and can draw on it as needed. It can then dip into the money for day-to-day use, and pay it back as revenue comes in.

In many companies, the sales cycle can be choppy, i.e. a boom or bust cycle, where the company is flush with cash one month, but then waiting for new clients in other months. Commercial credit can help bridge the gap in the slow months, allowing the company to make payroll and pay expenses while waiting to collect new revenue.

There's a commercial about a guy who has to work at a pirate-themed restaurant because he messed up his credit. That is a commercial for credit. Sorta. You don't wanna go there.