C&I Lending FAQ
Commercial and Industrial Lending: Get Support from Expert Lawyers in Greater Boston
Commercial and industrial lending involves loans made to a business to cover things like operational or working capital costs that a company cannot afford itself. When it comes to getting approved by a bank for a commercial or industrial loan, there is a rigorous approval process. This can include putting up collateral and extensive documentation outlining the arrangement. If you’re a company in Greater Boston looking to obtain a commercial or industrial loan, we recommend having a lawyer you can trust walk you through the finer details. At Lipresti Law, we have a team of knowledgeable attorneys with experience in several types of C&I lending. It's important to have support during this process to ensure the paperwork that holds your business accountable is sound and serves your company’s best interest. Read on for more information and reach out to us today to see how we can help you and your Boston business.
What is commercial and industrial lending?
Commercial and industrial lending, also known as C&I lending, is when a company gets a loan from a bank to cover expenses otherwise unaffordable. C&I loans are not available to the average consumer, only businesses can obtain a commercial or industrial loan.
What types of C&I loans are there?
There are numerous commercial and industrial loans available to businesses around Boston. C&I loans can be asset-based and have secured or unsecured term loans. They can also be merchant advances, factoring loans and more. We can help you navigate the various options of C&I lending to ensure the loan makes sense for your company's needs.
Are C&I loans the same thing as commercial real estate loans?
No. Commercial real estate (CRE) loans are mortgage loans used for commercial property purposes only. C&I lending typically involves short-term loans with variable interest rates that are insured by collateral. A C&I loan can help a local Cambridge small business buy new machinery, cover unforeseen operational costs, or buy the furniture for a new store front.
What is the benefit to C&I lending?
Commercial and industrial loans can provide a company with funds necessary to move their business forward without the struggle of soliciting outside investors. A C&I loan can help a company drum up the necessary funds for expansion, improvement and growth without having to relinquish any equity.
What are the drawbacks to commercial and industrial lending?
Oftentimes with a commercial or industrial loan from a bank, the terms are fairly short with variable interest rates. The bank or lender may require collateral or that the company maintains a certain debt service coverage ratio until the loan is paid off. If not negotiated properly, your business' growth can be stunted by the terms of its C&I loan. That's why it's so important to have a well-informed lawyer supporting you through the process!
Why do we recommend a knowledgeable lawyer for support when applying for a C&I loan?
As a business owner in Cambridge or Worcester, you shouldn’t be expected to know the ins and outs of C&I lending. Drafting paperwork for a C&I loan can be quite cumbersome. It requires knowledge and experience to ensure the terms are in your company’s best interest.
We highly recommend using our expert team of C&I lawyers at Lipresti Law. As each part of the puzzle comes together, we will be there with you every step of the way. We’re skilled in drafting, reviewing, and amending legal documents on your behalf. We can help negotiate term deals, as well as advise your company through putting up collateral.