Commercial Loan

A loan used to build a business. A company basically has two ways to raise money: equity and debt.

Equity means selling ownership in the company, usually in the form of stock. Fundamentally, investors trade cash for a stake in the firm. They make their money back if the business becomes successful and increases in value.

Debt represents the second form of raising money. The company is obligated to pay the money back and the lender makes a profit off the interest rate charged.

A commercial loan is a form of debt. It's not substantially different from what you probably think of when you think of a loan. The product line is just pitched at businesses rather than individuals.