A commercial finance company, also known as a commercial credit company, is a non-bank corporation created for the purpose of making loans to businesses, as opposed to individuals. Commercial finance companies are often subsidiaries of larger companies that are created to assist the parent company in financing sales. The subsidiaries may be wholly owned or not.

Unlike commercial banks that accept customer deposits, commercial finance companies use their own capital and bank lines of credit to make loans.

Commercial finance companies are usually more flexible in approving loans than commercial banks. Generally, their credit criteria is less strict and they usually process application much faster than banks. However, they usually charge higher interest rates than commercial banks.

Types of loans generally offered include: (1) Business term loans, (2) invoice factoring. (3) inventory financing, (4) lines of credit, (5) warehousing lines of credit, (6) SBA loans, (7) equipment financing, (8) insurance premium financing, and (9) accounts receivable financing.

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