Commercial lending refers to the process where financial institutions, such as banks, provide loans to businesses for various purposes. These loans can be used for purchasing equipment, expanding operations, or managing cash flow. The terms of commercial loans often depend on the creditworthiness of the business and the purpose of the loan. Typically, commercial loans come with specific repayment schedules and interest rates. Lenders assess the financial health of the business, including its revenue and credit history, before approving a loan. This type of lending is crucial for businesses to grow and maintain their operations in a competitive market.