Commercial loans are a form of financing offered by banks or financial institutions to qualifying business entities. A corporation or business entity may secure a corporate loan for a variety of reasons; in some instances a commercial loan may be desired to assist a particular company with short term financing to help fund basic operational functions, such as paying employee salaries or for the purchase of capital equipment and supplies that are needed to produce and subsequently sell the company’s goods. Commercial loans may also be utilized to purchase new equipment or machinery that is directly tied-into to the general operation of the business.