Credit is given to individuals and corporate entities to fund their business activities. Commercial loans are available for short or long term. Creditors, such as banks, usually prefer to give out short term loans, as this ensures they will recoup their money quickly.Short term loans are usually sought by businesses that need liquidity, or cash, to buy raw materials or pay staff. In turn, they get payments from their creditors or by selling finished products to a ready market to quickly offset these costs. Short term financial instruments are usually offered for a period of fifty days or less. On the other hand, long term financial instruments are given out for periods of several years. The interest rates on long term loans are usually lower than those of short term and can either be fixed or variable interest rate over the repayment period.These financial instruments need to be represented on paper and signed by both the lender and borrower. The terms are made in writing and each party knows their responsibility before signing the agreement.When economic problems arise, like those experienced today, commercial loan modifications can be made to an original agreement, even shortly after a repayment process has already begun. Commercial loan modifications seek to relieve the borrower of the original agreement terms, when business decreases and the terms cannot be met when due. Due to a loan modification process, a new agreement will need to be drawn up with new terms stipulated.Hotel loans offered by financial institutions can and should be modified during these difficult economic times. The hotel borrower or hotelier can modify the terms of his loan, with help from a hotel loan modification expert. A modification will enable the borrower to meet less stressful requirements and continue to maintain their business.Hotel loan modifications provide a way out for defaulting hotel businesses and keep the lender from having to operate a hotel business they are not prepared to deal with. The new terms allow the business owner to pay less monthly and continue to operate the hotel.