C&I Loans vs Commercial Real Estate Loans

CFA General
#1

does anyone know what the difference is between these two categories of commercial loans? ive looked them up online and cant seem to tell hte difference, they both seem to be commercial loans, with property as collateral. any ideas? thanks!

#2

C&I loans don’t have property as collateral. They can use A/R, the owner’s personal guarantee, the company’s stock, or gold bullion as collateral.

#3

thanks flowbe! so can i say for sure that no C&I loans have property as collateral, or is it that they can either use property as collateral or any of the other items listed by you?

#4

Sure they can use the property as collateral but the purpose of a C&I loan is not to finance the real estate. That’s what commercial real estate loans are for. Banks will take anything they can get as an abundance of caution when it comes to a small business loan. So if the owner holds a piece of real estate and is offering up as collateral the bank will take it.

#5

thanks!

#6

sorry flowbe one more question: do all c&i loans have collateral, or could it be that some are unsecured? thanks in advance!

#7

C&I can hold owner occupied real estate as collateral, while CRE is a classification for non-owner occupied, income producing properties.

#8

FYI, flowbe is not correct. The financing of an owner occupied property is considered C&I.

#9

BTW, what does C&I stand for? I am not familiar with this space.

#10

Commercial & Industrial

#11

thanks dmiller!

#12

dmiller385 Wrote: ------------------------------------------------------- > FYI, flowbe is not correct. The financing of an > owner occupied property is considered C&I. In what country? The 8,000 US banks that submit schedule RC-C of the call report put owner occupied CRE on line 1.e.(1). (loans secured by owner-occupied nonfarm nonresidential properties.) If you have something stating these can be included on line 4 (commercial and industrial loans) I’d love to see it.

#13

Debt consolidation is the best available method to pay off all previous debt and financial liabilities. In this method consolidation of debt is done by taking a consolidation debt loan. That means the debtor is taking a single personal loan to pay his all previous debts. This loan is just a way of consolidating debt and financial liabilities taken from different sources.