Corporate loans are loans made to businesses for a specific business purpose. There are many types of corporate loans, and lenders change interest rates for these loans based on risk and market conditions, just like individual loans. Without these loans, most companies would not have enough funding for basic business activities. While there are many varieties, several corporate loans are more popular than others.

Working Capital

A working capital loan is funding for the business to use in its day-to-day activities. These loans are common in industries that have transactions costs for the company. Businesses may also use these loans to pay suppliers or pay employees. Working capital loans can be either secured or unsecured. Secured loans use some type of business asset as collateral so the lender can seize the asset if payments are not made.

Real Estate

Real estate loans are made so businesses can buy property. These corporate mortgages are used if businesses want to own office space instead of rent it, or if a business wants to buy land for a specific purpose, such as growing an orchard or harvesting raw materials. They are very similar to individual mortgages, but businesses may pursue further construction or development loans as well.


Venture loans are start-up loans allowing businesses to open. Lenders do not like to give out venture loans, since the odds of a new business failing are high. They prefer to see proof that the business will succeed or has the backing of an entrepreneur they have done business with before. These loans often have high interest rates and collateral requirements to make up for the risk.

Line of Credit

Line of credit loans allow businesses to borrow money from a lender at any given time, up to a certain amount of money per year. This is a common arrangement if the business has varying profits from month to month and may need extra funds to cover expenses at certain times. The size of the line of credit depends on the business and the lender's expectations.


Equipment loans are among the simplest types of corporate loans. These smaller loans help businesses buy major assets. Manufacturers need to buy factory equipment, transporters need vehicles, and offices need computer software and hardware. These are large expenses, and many expanding businesses need a loan in order to buy such equipment.