business loan definition and types
An introduction about Business Loan A business loan is a certain amount of money that a company borrows from a lender to support its financial needs. The company is required to repay the loan over time, following specific terms and conditions agreed upon with the lender. This borrowed money can be used for various purposes such as expanding the business, covering startup costs, purchasing equipment, or managing cash flow. Before applying for a business loan, it is important for business owners to understand their financing options, how loans work, and what criteria lenders typically consider when evaluating loan applications. Definition Business Loan: A business loan is money borrowed by a business to help with expenses that they cannot afford to pay for immediately. This could include things like buying new equipment, covering payroll, or expanding the business. However, the lender does not provide this money for free. They charge an additional fee called interest, which is a pe