Definition: Commercial Loans

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Commercial Loans

Commercial loans are the traditional debt finance (senior debt) where the source of repayment for creditors is the sponsoring company, backed by its entire balance sheet and not by the project’s cash flows alone. For balance sheet owned projects, creditors sill analyze a project loan based on its own merits, but will also take into consideration the financial health of the sponsor’s balance sheet and will estimate the net effect of the new project on the overall financial structure of the organization. The two most common examples of commercial loans are construction and mortgage loans.

Wikipedia Definition


Also Known As
Commercial Lender
Related Terms
LoansFinancing