Commercial loans are specific to commercial entities and are used for purchasing of business property,
renovations, equipment replacement, modernizing of plant and debt consolidation.
Interest is charged on a reducing balance basis, therefore, over the term of the loan, as interest decreases,
more of the installment will be applied to the principal and the interest portion will be smaller.
- Expansion pressures to satisfy demand can be realized without much delay
- Refinancing is optional
- Effective servicing of facility establishes a good credit rating thus ensuring future credit opportunities
- To qualify, the business, as well as its owners and directors must be in good financial standing.
- Installments must fall within the debt servicing capacity of the business.
- Extended to businesses mainly for the purchase of equipment, upgrading, expansion, etc.
- Standing orders for loan payments can be placed on chequing and savings accounts.