Commercial lenders lean towards movement of significant amounts of cash for short time periods to maximize interest profit. The most common commercial loans are in the form of bridge loans which generally last only a few weeks. Their purpose fills a gap by providing interim financing to keep large projects going until permanent, more stable financing is achieved. These short period bridge loans are also made available quickly, circumventing bureaucratic processes that can cause critical project delays.
Commercial lenders are particularly interested in the hard collateral used to guarantee the commercial loan. No surprise, the collateral of course is the default for the lender’s recovery if the loan fails. Thus the type, quality, and equity of the hard collateral can many times be the deciding factor on a successful or unsuccessful loan.