Which of the following is a common type of loan used in the commercial banking sector?

A bridge loan is a common type of loan specifically utilized in the commercial banking sector. These loans are designed to provide temporary financing, often used by businesses to bridge the gap between the immediate financial needs and the availability of long-term financing. They can help cover costs during transitional periods, such as when a company is in the process of acquiring new property or waiting for a more permanent lending solution to finalize.

In contrast, although the other types of loans listed may also be available in various contexts, they are less prevalent in the commercial banking sector. Mortgage loans are primarily residential, payday loans are typically aimed at individuals with short-term cash flow issues, and auto loans are generally consumer-oriented. Therefore, while these loans serve important functions, they do not represent the same level of common usage within commercial banking as bridge loans do.