Reduces risk of people defaulting on  payments – Thanks to longer pay back duration, there is a reduced risk of people defaulting on their payments, thereby ensuring complete safety on their investments, made by the investors.
 
Attraction of large sums – Commercial loans, which can be availed for large amounts, helps the entrepreneurs to invest in bulk startups with one single loan amount, sans having to lookout for various loan options.
 
Does away with collateral security – Unsecured nature of commercial loans does away with the formalities of people having to provide for collateral security while obtaining loans.
 
Now, speaking about some drawbacks attached to availing commercial loans, some of these are as follows: