Cash Flow Solutions

types of loans / Unsecured Small Business Loans /

Commercial Lending Loan

Businesses often turn to commercial loans when they need access to extra working capital.

How does a commercial lending loan work?

Because many businesses are cyclical, there will be times when you won't have access to enough working capital to meet your business's needs or goals. One commonly used option is to secure a commercial loan to fill gaps in working capital and hire and train staff, increase inventory, invest in equipment or launch new marketing promotions.

Commercial lending is any loan extended to a business rather than to a consumer or individual. Commercial loans can range from short-term (30 days to one year) to long-term (15 to 30 years) and can be secured (backed by collateral) or unsecured. Unlike personal loans, traditional lenders usually require the commercial borrowers to submit extensive financial statements and to maintain insurance on the financed item(s).

How can my business benefit from a commercial lending loan?

Any business can benefit from having an ongoing source of funding to keep your business running smoothly and profitably. Some specific examples of ways your business can benefit from a commercial lending loan include the following:

  • Upgrade office technology
  • Invest in equipment
  • Create a new marketing campaign
  • Hire additional employees

How can I get a commercial lending loan?

Merchant cash advances offer benefits to small businesses, including payment schedule – you only pay back your advance when your business makes sales. If you have had strong sales but struggle with little or bad credit, a merchant cash advance may be a good option for your business.

What do I need to do to get a merchant cash advance?

While taking out a commercial loan can provide an infusion of working capital, it can take days to get approval from a traditional lender and only provides a one-time solution for gaps in cash flow.

If you're looking for the security of working capital available when you need it, consider a line of credit from American Express Business Blueprint Funding™. We look at the overall performance of your business through our online, automated approval process and can help you avoid the extensive paperwork and wait times required by traditional lenders.

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