It’s important to discuss potential delays or issues with the lender in advance. Some loans may have provisions for extending the term or adjusting the repayment schedule in such cases.

Unlike residential mortgages, which are used to purchase homes, commercial mortgages are intended for businesses and are secured by commercial properties. Commercial mortgages typically have higher interest rates and more stringent qualification criteria.

If a business defaults on a commercial mortgage, the lender may initiate foreclosure proceedings, leading to the sale of the property to recover the outstanding debt. Understanding the terms of the loan and discussing potential issues with the lender early on can help avoid default.

While these financing options are accessible to many businesses, factors often assess the creditworthiness of the business’s customers as part of the approval process.

No, factoring is not a loan. It is the sale of an asset (accounts receivable) to a third party. Invoice discounting, on the other hand, involves using invoices as collateral for a loan.