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What is Commercial Loan?

Sellers and buyers who sign commercial loan agreements should pay particular attention to the terms of the agreements, as ignorance and non-compliance with elementary legal norms can result in significant business and tax risks. This article discusses the features of signing a commercial loan agreement, as well as issues related to accounting and taxation of commercial lending operations.

A commercial loan is to obtain money or stuff that have common generic characteristics. A commercial loan is not a separate responsibility, it will always be an addition in relation to the main contract (contract of sale, lease and other relations associated with the provision of various services for a fee). Consequently, a commercial loan is legally permanently linked with the agreement. The provision of a commercial loan under an independent loan agreement is not allowed. These are two separate agreements.

The need to use a commercial loan is due to the following reasons:

Types of a commercial loan

Commercial loan means lending carried out by the participants in the production and sale of goods (work, services) in the form of an advance payment (partial payment), prepayment, deferred payment for a good (work, service) and installment payment for a good (work or service).

Suppliers of goods, works, services provide commercial loans in the form of deferred and installment payments, buyers – in the form of prepayments and advance payments.

Interest rates

The responsibility to pay interest on the use of a commercial loan when executing a purchase and sale agreement arises only from the moment the debtor fails to fulfill its main duty – to transfer pre-paid goods or to pay pre-transferred goods. In this case, interest is accrued on the loan from the day the goods are transferred to the buyer under the agreement, until they are transferred to the buyer, or until the prepayment for the goods is returned. In fact, interest will be penalties for failure to fulfill the terms of the contract (late payment).

If the creditor is a legal entity, the amount of interest is determined by the bank loan discount rate existing at the place of its location on the day of the fulfillment of the monetary obligation or its corresponding part. When recovering a debt in a judicial proceeding, the court can satisfy the creditor’s claim based on the bank interest rate on the day the lawsuit is filed or on the day the decision is made. These rules apply, unless otherwise specified by law or contract.

The contract may stipulate the obligation of the buyer to pay interest on the amount corresponding to the price of the goods, starting from the day the seller transferred the goods. In this case, interest accrued up to the day when the payment for the goods will be made. It is a payment for a commercial loan.


When providing a commercial loan, pricing can be carried out in the following ways: