Commercial finance is a form of business finance or business funding. The lending is designed for commercial entities, rather than individuals. There are many types of commercial finance, ranging from straight forward loan terms, through to asset finance, land acquisitions, and property finance.
The simplest form of commercial finance is a commercial loan. You agree an amount, a repayment period and the cost of finance (for example, the interest rate and fees). Commercial loans can be secured or unsecured. Secured loans are usually cheaper, because the lender is taking a lower risk, but you need to have assets to use as security. Unsecured loans are useful for companies that don’t have enough assets to get a secured loan. Originally, commercial finance would have come from mainstream lenders like high street banks, but in more recent history the door has opened to include a variety of alternative finance available too.