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Commercial Financing Market Still Less Risky
02/14/08
Commercial Financing Market Still Less Risky
If you're struggling to understand the concepts behind commercial financing, just consider the difference between commercial financing and residential financing.
Residential loans are applicable for single families, whereas commercial loans apply to larger groups, such as a corporate office building or a large condominium compound. Commercial real estate loans are perceived as a less-risky investment for companies that have large reserves of capital. Although the single family home sales are on the decline, the commercial real estate market is growing.
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