Define: Commercial Loan

UK Accounting Glossary

Definition: Commercial Loan



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Full Definition of Commercial Loan


A commercial loan is a loan borrowed by a company to pay for any of several financial needs. A commercial loan is short term, and it may be renewable once it matures. A commercial loan is used to finance working capital needs; that is, needs for operations and other current requirements of the business. A commercial loan can be borrowed from a bank or a credit union. The business’ tangible assets are usually used as collateral to secure the loan. To qualify for a commercial loan, the business must be seen as a good credit risk. Commercial loan officers look at various financial and tax statements, plus a business plan, to determine how good a credit risk the business is.


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https://payrollheaven.com/define/commercial-loan/
Modern Language Association (MLA):
Commercial Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 22, 2020 https://payrollheaven.com/define/commercial-loan/.
Chicago Manual of Style (CMS):
Commercial Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/commercial-loan/ (accessed: February 22, 2020).
American Psychological Association (APA):
Commercial Loan. PayrollHeaven.com. Retrieved February 22, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/commercial-loan/

Definition Sources


Definitions for Commercial Loan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.