A commercial loan is a type of financing specifically designed for businesses to fund their operations, purchase equipment, or invest in real estate. These loans are typically offered by banks and financial institutions and can come in various forms, such as term loans, lines of credit, or commercial mortgages. The terms and interest rates often depend on the borrower's creditworthiness and the purpose of the loan. To qualify for a commercial loan, businesses usually need to provide financial statements, a business plan, and collateral. The repayment terms can vary, but they generally range from a few months to several years. Understanding the different types of commercial loans can help businesses make informed financial decisions.