Transactional lending refers to a type of financing that is focused on specific transactions rather than the overall creditworthiness of the borrower. In this type of lending, the lender evaluates the potential transaction and bases their decision on the specific details and expected return on investment. This form of lending is commonly used in commercial real estate, where the lender assesses the potential value of the property and the borrower's ability to generate income from it. It allows for more flexibility and faster decision-making compared to traditional lending methods. Transactional lending is beneficial for both borrowers and lenders as it enables quick access to capital for specific projects and provides lenders with an opportunity to earn a higher return on their investment.