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Commercial loans come in various forms, each designed to serve specific purposes:
- Term Loans: These are standard loans with fixed repayment schedules and interest rates, suitable for long-term investments.
- Lines of Credit: Offering flexibility, lines of credit allow businesses to draw funds as needed, making them ideal for managing short-term cash flow needs.
- Equipment Financing: Specifically for purchasing machinery or equipment, these loans often use the equipment itself as collateral.
- Commercial Real Estate Loans: Used to purchase, refinance, or develop commercial properties, these loans typically have longer terms and larger amounts.