Commercial loan, lender takes any commercial building or business house as collateral. So, it is not the loan for individual borrower, but it is given to any partnership, private limited company or incorporated business.

Commercial finance can take the form of debt or equity.  The advantages and disadvantages of debt or loans from the banks are similar to those from social finance organisations.  However, the banks are less likely to lend to new or more risky organisations or to spend the time to work with organisations that need help to develop their business plan.

Equity finance is permanently invested in the organisation in exchange for part-ownership and a share in the profits.  However, registered charities and many other not-for-profit organisations cannot share ownership or distribute profits.  It is usually very difficult to sell on any ownership stakes, which deters investors.