When you think about a loan, usually you'd think of an amount of money that's provided to an individual. This may be used to help them pay for a car, a home, or even a startup. When it comes to companies, however, commercial and industrial loans should be discussed. Also known as C&I loans, these are viewed as essential to the growth of many businesses. For a better understanding of what these loans entail, here are a few details provided by Robert Jain.
By definition, a commercial and industrial loan is one that's provided to a business as opposed to an individual; this is the main difference that names like Bob Jain can shed light on. Furthermore, they are designed to cover costs associated with business expenses. For instance, a new piece of equipment may have to be purchased. A C&I loan will help cover the cost, to some extent, so that the transaction can be completed.
To qualify for a C&I loan, you have to provide collateral. For those that don't know, collateral, in the financial sense, is proof that the sum of money that one takes out will eventually be repaid. Some examples of this include, but aren't limited to, insurance and real estate. The main idea to take away from this is that C&I loans aren't freely given out, which may be seen as a comfort to those that are looking to apply.
One of the misconceptions that people make about C&I loans is that they are interchangeable with CRE loans. This is untrue, as they differ in a number of ways. For instance, C&I loans are largely used for operational costs, as discussed earlier. CRE loans, on the other hand, are strictly tied to real estate. To say that they are the same would be an oversight and could lead to confusion among those wondering what loans they require.
With this information in mind, you may want to know if a C&I loan is worth applying for. First, you have to understand that they benefit business owners. More important, they'll benefit those that are new to their industries. After all, you will have to build your company's credit, which may be easier said than done. While a C&I loan isn't the only way to amass credit in your company's name, there's no denying the fact that it can help.
By definition, a commercial and industrial loan is one that's provided to a business as opposed to an individual; this is the main difference that names like Bob Jain can shed light on. Furthermore, they are designed to cover costs associated with business expenses. For instance, a new piece of equipment may have to be purchased. A C&I loan will help cover the cost, to some extent, so that the transaction can be completed.
To qualify for a C&I loan, you have to provide collateral. For those that don't know, collateral, in the financial sense, is proof that the sum of money that one takes out will eventually be repaid. Some examples of this include, but aren't limited to, insurance and real estate. The main idea to take away from this is that C&I loans aren't freely given out, which may be seen as a comfort to those that are looking to apply.
One of the misconceptions that people make about C&I loans is that they are interchangeable with CRE loans. This is untrue, as they differ in a number of ways. For instance, C&I loans are largely used for operational costs, as discussed earlier. CRE loans, on the other hand, are strictly tied to real estate. To say that they are the same would be an oversight and could lead to confusion among those wondering what loans they require.
With this information in mind, you may want to know if a C&I loan is worth applying for. First, you have to understand that they benefit business owners. More important, they'll benefit those that are new to their industries. After all, you will have to build your company's credit, which may be easier said than done. While a C&I loan isn't the only way to amass credit in your company's name, there's no denying the fact that it can help.
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