A business loan is a financial product that provides funding to businesses for a variety of purposes.
What is a business loan used for?
Buying equipment
Expanding the business
Managing inventory
Meeting working capital requirements
Maintaining cash flow
Strengthening financial stability
How does a business loan work?
A business loan is a type of credit vehicle where a sum of money is lent to a business in exchange for future repayment
The lender may add interest or finance charges to the principal value, which the borrower must repay in addition to the principal balance
What are some types of business loans?
Working capital loan
Term loan
Letter of credit
Bill discounting
Overdraft facility
Machinery loan
Government loans