Business Loan
A business loan is a sum of money borrowed by a business to fund various operations, such as expanding the business, purchasing equipment, or covering operational costs. Business loans are typically provided by banks, credit unions, or other financial institutions, and they usually come with specific terms, including the interest rate, repayment schedule, and the duration of the loan.
Purpose
Business loans can be used for various purposes, including startup costs, expansion, working capital, inventory purchases, equipment purchases, and other business-related expenses.
Interest Rates
The interest rate on a business loan can be fixed or variable and depends on factors such as the lender, the borrower's creditworthiness, the amount of the loan, and the term of the loan.
Repayment Terms
Repayment terms can vary widely, from short-term loans (a few months to a year) to long-term loans (several years). The repayment schedule can include monthly, quarterly, or annual payments.
Eligibility
To qualify for a business loan, a business typically needs to meet certain criteria, such as having a minimum credit score, being in operation for a specific period, and providing financial statements and a business plan.
