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A commercial loan is a debt-based funding arrangement that a business can set up with a financial institution, as opposed to an individual. They are most often used for short-term funding needs.
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Commercial and Member Business Loans – Pages – Home – Types of Commercial Loans. A credit union should structure a commercial loan consistent with the borrowing need of a borrower. It is critical that a credit union’s loan term and structure match the anticipated cash-flows and repayment sources with the purpose of the loan (see § 701.21(c)(4)).Typical types of commercial loans include:
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