As you can guess from the names, one key way commercial loans are different from other loans is the amount of money you can borrow. While each lender will have their own standards, small business loans commonly max out at around $100,000. A commercial loan can go up to $500,000 and higher.
The larger size of a commercial loan means that lenders may be willing to consider more flexible payment terms and conditions. For example, a lender may offer a balloon payment plan where you pay less per month in exchange for making a large lump sum payment at the end.
Finally, qualifying for a commercial loan can be more difficult, since the lender will be giving out more money and the stakes are higher. The process depends on the type of lender. A traditional lender will have a more formal, lengthier application process whereas an online lender may have a quicker process, where they just need to verify your income. In any case, to qualify for a commercial loan, expect that your business will need higher revenues, a longer track record and/or greater collateral than you would need to take out a small business loan.