The most common type of commercial bank loan granted to small businesses is:

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Short-term commercial loans are the most common type of loan granted to small businesses by commercial banks. These loans are used for short-term financing needs, such as working capital, inventory purchases, or cash flow management. The repayment period for these loans is usually less than one year, making them a popular choice for small businesses with seasonal cash flow fluctuations or short-term financing needs. Lines of credit, floor plans, and unsecured term loans are other types of business loans that are available, but they may not be as commonly granted to small businesses as short-term commercial loans.

The Most Common Type of Commercial Bank Loan Granted to Small