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A commercial loan is a loan lent to a business, for a defined purpose.
The loan may be secured but is generally always a short-term loan which is to be repaid within a couple of months in a single lump sum payment.
Details of the agreement will depend on a number of factors, namely, the relationship between the lender and the business – whether they have had previous dealings, the credit history of the business, the market and so forth. Like home loans, these to can be either fixed interest or variable.
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Always read the disclaimer and consult a finance professional before acting on any information found here.