The terms "commercial loan" and "business loan" are sometimes used interchangeably, but there are some key differences between the two.
A commercial loan typically refers to a loan that is used to purchase, refinance or improve commercial property or real estate. Commercial loans may be used to finance the purchase of office buildings, retail space, industrial properties or other types of commercial real estate. These loans are often secured by the property being financed, and may have a longer repayment period than a business loan.
On the other hand, a business loan is a loan that is used to finance the operations of a business, rather than to purchase property. Business loans can be used for a wide variety of purposes, including working capital, inventory purchases, equipment purchases, and expansion projects. These loans are often unsecured, meaning they do not require collateral, and may have shorter repayment terms than a commercial loan.
In summary, while both commercial loans and business loans provide financing for businesses, commercial loans are generally used to purchase or improve property, while business loans are used for day-to-day operations or other business expenses