A commercial loan is a type of loan that is designed specifically for businesses. It is used to finance business operations, such as purchasing equipment, expanding operations, or buying real estate.

There are several types of commercial loans available, including term loans, lines of credit, SBA loans, and commercial mortgages.

The eligibility requirements for a commercial loan vary depending on the lender and the type of loan. Generally, lenders will look at factors such as the borrower’s credit score, business history, and financial statements

The interest rate for a commercial loan varies depending on the lender, the type of loan, and the borrower’s creditworthiness. Generally, interest rates for commercial loans are higher than those for residential loans.

The repayment term for a commercial loan varies depending on the lender and the type of loan. Generally, repayment terms range from 1 to 25 years.

The loan-to-value (LTV) ratio for a commercial loan is the ratio of the loan amount to the value of the property being purchased. Generally, lenders will require an LTV ratio of 80% or less.

The debt service coverage ratio (DSCR) for a commercial loan is the ratio of the borrower’s net operating income to the debt service payments on the loan. Generally, lenders will require a DSCR of 1.2 or higher.

The documents required to apply for a commercial loan vary depending on the lender and the type of loan. Generally, lenders will require financial statements, tax returns, and other documentation that demonstrates the borrower’s ability to repay the loan.