Commercial lender
Encyclopedia
Whilst nearly all lenders offer loans on a commercial
basis the term commercial lender has differed meanings around the world.
Commerce
While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any...
basis the term commercial lender has differed meanings around the world.
- In much of the world and especially in the UK, the phrase commercial lender refers to a lender arranging commercial loans especially commercial mortgageCommercial mortgageA commercial mortgage is a mortgage loan made using commercial real estate as collateral to secure repayment.A commercial mortgage is similar to a residential mortgage, except the collateral is a commercial building or other business real estate, not residential property. In addition, commercial...
s. In the UK it is generally taken to refer to a lender who lends to businesses rather than individuals. ie. a lender to commerce. - In the US the term refers to a type of Non-conforming loanNon-conforming loanA non-conforming loan is a loan that fails to meet bank criteria for funding.Reasons include the loan amount is higher than the conforming loan limit , lack of sufficient credit, the unorthodox nature of the use of funds, or the collateral backing it. In many cases, non-conforming loans can be...
as described in this article: Commercial lender (US)Commercial lender (US)In the United States a commercial lender offers loans backed by hard collateral. In most cases this is real estate, but it can also include factoring, non-conforming assets, or other sources of collateral.-Commercial lending practices:...