Commercial financing is often clouded in technical terms and lender jargon. That confusion can prevent founders and CEOs from securing the right funding—or worse, lead them to sign unfavorable deals. At Sterlas Capital, we believe in transparency. This guide will walk you through the key concepts, loan types, and insider terminology—so you can make confident, well-informed decisions.
Commercial financing refers to credit products and capital solutions designed for businesses (not individuals). It’s used to support operations, expansion, real estate acquisition, equipment purchase, working capital, and more.
Scaling operations
Acquiring another business
Bridging short-term cash flow gaps
Purchasing inventory or commercial real estate
Consolidating debt
Lump sum repaid over a fixed schedule. Great for long-term investments like acquisitions or expansion.
Flexible access to capital—you only pay interest on what you use. Ideal for recurring expenses and cash flow management.
Secured by business assets like accounts receivable, inventory, or equipment. The asset mitigates lender risk, reducing your need for personal guarantees.
Your repayments fluctuate based on monthly revenue. Ideal for fast-growing companies with predictable income.
Government-backed loans with longer terms and lower rates—but slower approvals and stricter requirements.
The schedule by which loan principal and interest are repaid.
The total yearly cost of borrowing, including interest and fees.
A measure of how well your business income covers debt payments. A DSCR of 1.25+ is usually ideal.
Common in real estate lending. It’s the ratio of the loan amount to the asset’s appraised value.
A clause that makes the borrower personally liable if the business defaults. Risky—be cautious.
Fee charged if you repay your loan early, depriving the lender of expected interest income.
A non-binding summary of proposed loan terms. Read this carefully before signing final documents.
You speak with a funding advisor who understands your business, goals, and capital needs.
We review your business revenue, credit profile, and financials to determine potential eligibility.
The lender performs a deeper analysis: income statements, cash flow, liabilities, etc.
You receive one or more structured offers—often with choices regarding interest rate, loan term, and collateral.
Once terms are accepted, legal docs are signed and funds are disbursed—usually within 1–10 business days.
Chasing low interest rates while ignoring fees, terms, or loan structure
Signing personal guarantees without knowing the risks
Taking short-term money for long-term investments
Choosing a lender based solely on speed, not long-term compatibility
We handle sourcing, negotiating, and closing—so you don’t have to shop lenders or decipher legal terms alone. Our expert team:
Matches you with pre-vetted capital providers
Structures the best terms for your needs
Explains every clause and repayment term
Ensures you’re never blindsided by hidden fees or liabilities
Commercial financing doesn't have to be complex. Whether you're acquiring a company, funding growth, or managing cash flow, the right structure makes all the difference.
📩 Reach out to our team at info@sterlasvan.com to schedule your personalized funding strategy session.
Let’s break down barriers—and unlock your next stage of business growth.