Commercial and Industrial (C&I) Loan

When you need a loan to fix up your house, you might get a home equity loan. If you need money for some personal matter (hush money, to cover gambling debts, surgery for your ferret, etc.), you might get a personal loan. If you're a corporation and need funds to run your business, you seek out a commercial and industrial loan.

A C&I loan designates a financial product aimed at businesses rather than individuals. These tend to be short-term, collateral-based loans, with interest levels tied to prevailing rates (also known as LIBOR or the prime rate).

The funds can be used for whatever the business wants (hush money, gambling debts, etc...though, in business, "gambling" is known as "speculation"). Usually, though, the funds are used for working capital, meaning that it provides cash to pay business expenses while waiting for revenue to ramp up or be collected. Or the company uses the loan to pay for capital improvements, such as a new piece of equipment.