What is commercial financing?

Banking Commercial Finance

We represent banks and other lenders and borrowers in a broad range of secured and unsecured loan transactions to finance business operations and acquisitions. We represent national and regional banks in the Boston area as well as commercial leasing companies, government agencies and private lenders in local and multi-state transactions.

Sassoon Cymrot Law, LLC, attorneys are familiar with all types of commercial loan transactions. We represent lenders in asset-based loans, working capital financings, loans, and credit facilities involving letters of credit. Our lawyers have experience with a wide variety of collateral including real estate, personal property, equipment leasing, intellectual property, and loans that are syndicated, participated or sold. Sassoon Cymrot Law, LLC, lawyers are familiar with commercial mortgage-backed securitized (CMBS) mortgage loans secured by commercial properties including shopping malls, offices, hotels, warehouses and multi-family housing.

Our lawyers’ services to lenders include assistance in the structuring of transactions; review and preparation of term sheets, commitment letters and similar documents; consultation regarding loan administration and due diligence review of loan portfolios; preparation of required documentation including promissory notes, security agreements and mortgages; restructuring and forbearance agreements; enforcement of remedies, including analysis of rights; creditor foreclosure proceedings with respect to both real and personal property; and commencement of legal remedies. Sassoon Cymrot Law, LLC, lawyers also serve as borrower’s counsel in loan transactions.

FAQ

Commercial financing refers to loans or credit provided by banks and lenders to businesses for purposes such as buying equipment, expanding operations, purchasing real estate, or covering working capital needs.

Common commercial loan types include: Term Loans – lump sum borrowed and repaid over time with interest. Lines of Credit – flexible access to funds for short-term needs. Commercial Real Estate Loans – for purchasing or refinancing property. Equipment Financing – loans or leases for machinery or vehicles. SBA Loans – government-backed loans with favorable terms.

Interest rates on a commercial loan depend on several factors: the type of loan, borrower’s creditworthiness, market interest rates, collateral, and whether the loan is fixed-rate or variable-rate. Strong financials and collateral usually mean lower rates.

Secured loans require collateral (real estate, equipment, inventory). If the borrower defaults, the bank can seize the collateral. Unsecured loans are based on credit strength alone and often carry higher interest rates because the risk to the lender is greater.

Before applying for financing businesses should: Gather up-to-date financial statements (balance sheet, income statement, cash flow). Prepare a solid business plan explaining the purpose of the loan. Review credit reports. Ensure tax filings are current. Be ready to show collateral, if needed.

Banking Commercial Finance Specialities

Real Estate Finance

We represent lenders and borrowers in a wide range of financing transactions, including construction financing; real estate and land development loans; mezzanine and subordinated debt…

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