Types of Commercial Lenders
There are many Commercial Lenders available to finance funding for a commercial businesses
Following is a summary of what kind of lenders are mainly operating in Canada
Commercial deals are the most difficult ones. The reason is that there are much more factors involved than a simple residential loan. Also it is not certain if a case would mature or not. Funding ratio for a commercial mortgage is lower than a residential mortgage. That is one of the reason it is difficult to broker a commercial loan. At the same time number of parties willing to take up risk with commercial lending is more. As the reward is high too.
Commercial Lenders
| Lenders | Details |
|---|---|
|
Government of Canada |
As a nation we need small business to grow. Government takes up the leadership in this area. |
|
Banks |
Banks are very actively involved in this market. |
|
Capital Investors |
Often times Capital Investors invest money in a business to let buy Land or machinery |
|
Debt Financing |
This is done to reduce the debt service load on a business by manupilating the loan term. |
|
Venture Capital |
There are companies who invest in a business after reviewing the case. |
|
IPO |
Raising money or fund thru public offering. So, in this case public is the lender. |
|
Gap Inverstors or Angel Investors |
Sometime businesses needs money to fill in some gap in funding and expenses. But these types of lending in very expensive. |
Table C.1.2 Commercial Lenders
