business and commercial loans are essential to finance organisational growth and operation

A Guide to Business and Commercial Loans

Whether you’re already running a business or preparing to start one, there’s no shortage of matters that require your attention. Financing your business’s growth is one issue that few find easy – especially when thinking of the lasting consequences of that decision. Many also find it challenging to deal directly with banks, further complicating the process. Developing knowledge of business and commercial loans, as well as working with professionals to guide you is the best way to ensure you secure the most suitable business loan for your needs.

Business and Commercial Loans Uses

By their very nature, loans give borrowers some level of financial freedom. There’s a broad range of purposes for which someone might need to secure a loan; the loan market understands this. Our clients commonly acquire finance in order to:

  • Start, expand and grow their business;
  • Purchase and/or install equipment or inventory;
  • Stimulate cash flow;
  • Maintain, refurbish and update business assets; or
  • Modify their old loan structure after their situation has changed, reducing their repayments.

Acquiring a Business or Commercial Loan

When in the process of securing a business or commercial loan, it’s essential that you’re prepared. This means having already run the financials – knowing how much you need to borrow and what that finance will be used for. Most lenders will require a complete business plan with your application however, low documentation business loans are also an option some choose to look into. Keep in mind that a low doc business loan is riskier for a lender, so take time to carefully examine the terms and conditions of any loan you consider.

Loan Structures

Loans generally fall into the two basic categories of fixed and variable rates. A fixed loan interest rate will not change over the agreed upon term of the loan. On the other hand, a variable loan interest rate can fluctuate in accordance with the market’s rise and fall. The bottom line is that you can’t be sure if securing a variable loan will end up costing more or less – the market will ultimately decide. There are many other details to consider when it comes to structure as well – research is key. Working with a broker can give you some expert knowledge and access to some invaluable offers which are not available on the standard market.

Business Loans

Perhaps unsurprisingly, different kinds of business loans exist for different purposes. Some of the most common include:

  • Business finance loans;
  • Equipment finance loans;
  • Trade finance loans; and
  • Refinancing.

Although some of these names are self-explanatory, you may want to speak with your broker for an in-depth discussion about how these loans differ from one another and what they are specifically used for.


Securing the right business or commercial loan for your purposes is essential. The terms and length of commitment required for most loans mean that you want to be certain you select the most appropriate for your individual circumstances. For more information on business and commercial loans, get in contact with the team at Provide Finance.