"Commercial loans" is a term commonly used to designate loans not ordinarily maintained by either the real estate or consumer loan departments. In asset distribution, commercial or business loans frequently comprise one of the most important assets of a national bank. They may be secured or unsecured and for short or long-term maturities. Such loans include working capital advances, term business loans, agricultural credits, and loans to individuals for business purposes.
Working capital or seasonal loans provide temporary capital in excess of normal
needs. They are used to finance seasonal needs and are repaid at the end of the
cycle by converting inventory and accounts receivable into cash. Firms engaged in
manufacturing, distribution, retailing, and service oriented businesses use short-term
working capital loans. In many banks, agricultural loans make up a large percentage
of the commercial loan portfolio. Medium-term (1 to 5 years) lending generally represents
capital goods financing, shipping loans and various specialized credits. Long-term
loans (those exceeding 5 years) are normally used to finance extensive projects
of multinational corporations, foreign governments, or foreign state-entities.
A bank's international division offers Lending to Australia importers and exporters'
foreign companies, multinational corporations, foreign banks, and foreign governments—either
directly or through state entities. The terms of such easy lending are consistent
with the purpose of the financing. Loans in international may be direct or discounted.
The only thing you need to take care regarding this payday loan ...