Commercial Financing Vs. Bank Loans

For the most part, business owners believe that bank loans are the only source for financing their ventures. However, not all entrepreneurs meet the high requirements to access bank loans. Business owners then turn to friends, family, and even put their own savings on the line to launch or grow their companies. Commercial financing offers an alternative to traditional bank loans, with more advantages than most people think.


Traditional bank loans require excellent credit and a strong financial history. Not many small business owners meet both qualifications. The reason for these requirements is that banks do not like to take risks, and would rather work with well-established business owners. Commercial financing solutions, on the other hand, are very affordable. Many commercial financing solutions do not even rely on credit ratings. The reason behind the ease of access for commercial financing programs is that most people in the industry used to be business owners, themselves, so they know the actual needs of entrepreneurs, and can customize a solution to help business owners reach their goals.

Funding Limitations

Most traditional lending institutions have internal limitations regarding how much funding they can give to business owners. The commercial finance industry does not have any such limitations. Whether a business needs a few thousand dollars or millions, there are affordable and accessible programs to provide the financing entrepreneurs need.


The basic axiom for any bank loan is that businesses assume debt when they take out a loan. After that, they spend the next few years repaying the debt, plus interest, according to a payment schedule. By contrast, commercial finance professionals can structure solutions for business owners which do not involve any debt at all. Programs such as purchase order financing, merchant cash advances, accounts receivable services, consumer financing options, and more do not place any debt on the balance sheets.

Time To Arrange Financing

Traditional lending institutions have a bureaucratic chain of command. The red tape can prolong the processing time for loan applications. In turn, business owners must wait before receiving the funding they need, often having to place time-sensitive projects on hold. Commercial financing has no such red tape to hold up the application process. Solutions can be arranged in as little as a day, depending on the program. Even with more conventional programs, like SBA loans, commercial finance professionals have the ability to fast track the process to get funding into the hands of entrepreneurs much quicker than traditional lenders.

Get The Commercial Financing You Need

Whether you need an unsecured line of credit, B2C financing, accounts receivable solutions, commercial real estate financing, or anything else, Vantage Commercial Capital can help. We help business owners sidestep the red tape of traditional lending channels to create customized solutions. Contact our office today to learn more.