Commercial Lending: Best Practices for Structuring and More
Commercial and industrial (C&I) lending has been an area of emphasis as banks seek to grow their loan portfolios during this economic recovery. Both C&I lending and agricultural lending involve many types of loans and credit facilities. Equally diverse are the various cash needs of these businesses, such as operating funds, plant expansion or equipment purchases. Commercial real estate (CRE) lending involves both term loans and construction (a type of bridge loan). In general, all of these borrowing needs can be grouped into four categories with distinct characteristics. Can you identify the analytical focus of a seasonal loan or a bridge loan? Hint: It is not your traditional financial statement analysis and industry research.