C&I Loans vs Commercial Real Estate Loans property, difference, commercial, online

dontknow1987

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!

Palantir

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.

hoangvu90

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?

grharmeyer

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.

yospaghetti

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

yospaghetti

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

Dapper425

Commercial & Industrial

wilslm

thanks dmiller!

cfa10yrplan

dmiller385 Wrote:
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> 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.